Ann: 2Q FY24 Quarterly Report & Appendix 5B, page-302

BigDaddy,

As you well know, AGI have been trying to get a plant and pipeline permitted for WE for some time (referred to EPA 3 years ago), still not there but very close. Approval of the AGI proposal creates options for STX, as does STX's farmland where a plant could be built quickly without requiring EPA approval.

I just can't see Hancock deliberately blowing up the JV goodwill by sole funding the build of a huge plant that won't be operating for 5+ years and will only be able to process 50% of the gas. Sure it may be possible but is it probable? I think you are suggesting that they would do it solely to pressure our balance sheet, but we have other low/no capex processing options so I don't quite follow why Hancock suboptimally allocating its own capital is so detrimental to us.

If the JV agrees to avoid 3rd party processing and wants a bigger plant, then the most likely outcome is Hancock buys 50% of SE and the farm and the plant gets built on STX's farmland which doesn't require EPA approval, could easily incorporate the SE resources, and would likely see STX carried through much of the development cost.

Just my opinion, tho. Not a JOA expert like you.