Koch actually converts his private shares into public and sells those via automatic set throughout the year. He has converted 285k and sold 277k YTD.
The firm on the other end structured this deal safely. Not easy to do a deal like this with a company that could reorganize within a year. Very little cash, and when cash is to be exchanged it's done so only when they drill, even the sunk cost portion.
Analyst are holding solid estimates but the market is uneasy. If the Benzinga article is correct that AO represents 40% of sales I'm afraid that this could get extremely wobbly.
Through an economic lens the producers look stupid. However, RRC and Co. are likely maintaining this because of the availability of cheap capital. Almost literally a day after this crash money poured in from distressed funds- flooding the sector with enough capital that by and large distress has yet to be an issue, though some shareholders might disagree. If among the crowd a "wise" CEO decided to only produce enough to cover the fixed cost until prices rebounded- he would deny his company access via EBITDAX multiple. Ultimately his company would shrink relative to others and be no better off.
I do know of 3G and DEO is the type of target they would seek. I just question the story. I mean a story of the principal of 3G is "contemplating" a takeover of DEO seems too weak to act on. The story didn't mention that they would use AB/Inbev as the vehicle but it would make sense and make it more digestible.
I don't want to rain on anyone's parade myself, but this story is sourced from an outlet in Brazil and Bloomberg ran with it. A deal of this magnitude requires a lot of capital- over $100B of it. That kind of capital isn't in Brazil. Only in London and NY is where that kind of capital is available and if that were the case the FT or Wall St Journal would have almost certainly picked up on it.