RE: Wpx-china , krn-india If the analysts and Wpx's management are right and milestone does cost the same as the K&S Legacy project to build then the calculation would be something like this.
Cost - $4.1 B
On a debt to equity of 70/30.
$1.2 Billion in equity that would need to be raised. So taking the recent equity raise price of .71 cent as the raise price, they would need to issue 1.69 Billion shares, which would take the total shares outstanding for Wpx to close to a 2 Billion share float.
Now if they couldn't get as high as a 70/30 debt to equity deal, and it was instead 50/50 , they would need to issue just under 2.9 BILLION shares and bring westerns float up to about 3.15 BILLION SHARES outstanding.
now assuming they could get a 70/30 debt to equity deal, what would the annual interest costs be?
Well, on $2.87 Billion the interest cost would be just under $230 Million per year.