A little surprised we still haven't seen anything from these non core asset sales. I guess the initial announcement wasn't because we already were working with a buyer and close to a sale, but rather it was an announcement to see if any buyers are out there. I feel like we should expect to hear something in the next month or two about this, right?
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Phillips wants to sell its 25% share of the REX Pipeline for ~1 billion dollars. The story says the book value is 451 million and the buyer would have to pick up an additional 5 hundred million dollars of debt as well.
So, if the asset is worth $451 dollars and P66's share of the debt is 5 hundred million dollars, it seems to me that Phillips is asking twice the value of the asset.
Why would an investor do that?
Here’s the thing: Our wonderful management team has committed to selling 3 billion dollars of assets in 2024.
If they’re unable to close these sales, then it would be 1 more example of P66 being unable to execute what they say they’re going to do.
It looks like any potential buyer has a lot of leverage in this situation and would be unwilling to pay a premium for assets.
So P66 can sell at fire sale prices or have to admit they can’t get the price they wanted. Either way they’re behind the 8 ball on this.
Anybody remember Trainer or Alliance? We aren’t exactly the best used car salesmen.
At some recent meeting, maybe the last earnings call, the CEO said that they would probably be talking about what was being sold at the next earnings call.
But with this bunch who knows. They are the ones who inflicted BT on the company.