Howard Marks of Oaktree majority shareholder of XCO wants the Eagle Ford assets. He just bought 1.3 million shares of Contango Oil & Gas Company which is right next to our Eagle Ford acres. Wilbur wants the dry gas at Haynesville. Marcellus gets sold off.
1. Ross, Watsa, Marks, Pickens gain majority stake via the rights offering
2. Ross makes deal with Marks to swap the EF assets for his stake in XCO (with or without cash), which allows Ross and Watsa to buyout the company on the cheap
3. Ross and Watsa acquire the company with a tender offer of $X (pick a number)
4. They sell of the parts they don't want (Marcellus, what else?)
5. Marks is made whole (and then some) via his agreement with Ross on EF assets, walks away
6. Ross and Watsa wait for LNG exports, profiting on commodity, transport, and raw materials assets
7. Where does that leave Pickens?