RE: RE: Smartinvest It wasn't "someone" on this board that said the deal was politically, It was the BMO analyst that said they heard it from their sources.
There is a huge amount of additional supply comi g to the market in the next few years from brownfield and greenfield projects. This is a long dated option that they can fall back on if necessary, and it cost them a pittance.
its a win win for them. If wpx builds they get the 1m tons. If they don't build and can't get finance, which is the most likely option, they can scoop up the rest of the shares in wpx for .10 cent or less 2 years from now.
Then they will have an asset where all the heavy lifting is done without haveing to worry or pay for a BFS or enviormental approval.
i think wpx will be at .25 cent next year.