RE:RE:RE:Pure speculationI hear you completely. I'd have to go back to the reports at that time to see what the valuations were on equity.
I would say that in general today, the equities are trading much cheaper than their underlying assets. I was in FCX early 2016 among other names, but the capital structure traded for 5x EBITDA at the time. In Feb 2016 they sold a $1 billion stake in their Morenci mine for 11x EBITDA. Clearly there was a major disconnect between the capital markets and the commercial asset markets. The stock eventually tripled for me to close the gap and I sold.
the point of me actually being in BNE at this time is the same - I would suspect that with equities so depressed right now, the price for the acreage standalone would be much higher than the equity multiple (currently also around a ludicrous 4.5x -5 EBITDA). Just let FCX, I doubt ARC contemplates selling this acreage for those levels, especially since they have a clean balance sheet and no pressure to do so.
Thus to issue more equity and eat a spread like from 5x on the stock, to 7, 8 or even 9x EBITDA ON the acreage, depending what ARC wants...
but again, this all goes back to what ARC would want, but I suspect it's a lot higher than the BNE CAP structure trades at.