Shelf is for leverage & secondary AFTER partnership...adding dip
Adding IOC on shelf registration $6 knock down to $68s. Steal. Was up to $75 today saying multiple bids received - IMO Shelf can be to take advantage of run on bids and/or provide leverage during negotiations...not a reason to sell. GUYS ITS A SHELF REGISTRATION NOT A SECONDARY. Its to prepare for run up and negotiations. Smart leverage move. ADDING
What if they received a "non-conforming bid" from XOM to have IOC supply NG to them for a third train and the shelf was to build a pipeline and drill more wells? Why wouldn't that be a better deal for both of them. XOM gets to amortize their $19 billion over a larger base, IOC doesn't have to get a huge investment for their LNG plant or wait several years for it to get built.