can someone explain
To me HOW a company can increase in value WHEN they are reducing the isze of their asset base? Seems a bit counter-intuitive to me...
selling assets... ultimately means fewer assets to produce or "grow organically"... smaller land base, means fewer reserves... fewer reserves means smaller book value...smaller book value means less money available from lenders... less money from lenders merans less drilling...less drilling means not replacing production declines... not keeping up with production declines means dwindling cash flow...
SO how exactly is selling assets going to grow the company???
Just looking for answers hear...
as always DYODD