First we sell San Juan for half of the book vale and now we sell Barnett for a third of the book value. I know gas isn't worth much these days but we sure seem to be destroying value. Will Anadarko go for a quarter of the book value? RL says no fire sales but when I go to the store and pick something up for these kinds of discounted prices it is always on sale. I love how they lie to our faces and expect us to believe them, what happened to 'we will only take what we see as our value for the assets'?
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Maybe you should re-read the last 13 words of your post. From what has occurred with asset sales thus far, how "valued" by the company, do they seem to you? Don't ever believe what people say. Pay very close attention to what they actually do.
The only way ELT knows how to generate cash is sell assets and borrow money! The eliminate jobs! If we truly had leadership they would have made the hard choices 2-1/2 years ago and reduced staff to survival mode! But since we do not have leardership they sell assets and layoff people! Hello Pan Am
-1deo "...we have to start generating cash NOW"... Seems we are back to sell assets and layoffs
Assets are worth what someone is willing to buy them for. Dry gas isn't competitive for capital or operating dollars with prices being so low - get what you can for them and move on.
Surmont, L48, North Montney are all cash drains until they reach critical mass and/or the capital depreciation comes off the books. It's a long game integrated thinking process. If we want to transform we have to start generating cash NOW.
-jau Don't forget layoff people....got to pay those bills
either sell assets or borrow money...either way gotta pay the bills!!
Not just limited to gas. ALL of the Lwr 48 shale oil plays are a negative drain on earnings. In Canada, Surmont is a negative drain on earnings. All these projects were over-capitalized. We will never realized break even in any of these assets.
After San Juan, after Barnett, after Anadarko, after Panhandle, It is questionable as to whether Lwr 48 (and Canada) should even exist. There will be a huge downsizing in the workforce.
I think we are going down.
Time seems to be working against him
If RL limps are moving, then assume he is missleading you! In his past life he was a used car salesman!