We were told that we’d hear more about Fayetteville’s fate when we release our numbers in another week or so. Three options as I see it with some of this news possibly given to us by the end of this month:
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Sell upstream and DGC - many months before we know outcome, so a lot of uncertainty. Fire sale price if gas stays close to where it is. We could structure sale to get some of the upside if prices run up after sale.
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Do nothing - “After further consideration, we want to keep this great asset. [Insert stupid Way quote here].”
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Sell all Fayetteville to Wall Street. We could breathe something about this this month. This could be done be splitting SWN into two companies. Both taking some of the debt. Upside is that both could be run much more efficiently (lower costs, etc). Downside is creating a Fayetteville story that investors would like (or at least tolerate) along with a Appalachian company that doesn’t have too much debt. More G&A with some duplicate structures (two Boards, two CEOs, etc), but plenty of room to run very lean below that. Oxy did this with California Resources - terrible timing for California Resources when oil was crashing.
Way is too stupid to come up with #3 on his own, but plenty bankers or a few of his deputies could give him the Cliff notes and talking points. The bumbling idiot could save his job (and his passion!) at the same time. That is what he cares about.