In exchange for diversifying its downside, ID and the SXY Board...

In exchange for diversifying its downside, ID and the SXY Board did sacrifice some of the upside potential. They were worried about their FCF, a lot of other small/ mid caps in oil and gas space have net debt and over-leveraged balance sheets which is fine if POO goes up inexorably in 2017 as expected but if not, some of these players saddled with debt due to owners/ cornerstone investors with deeper pockets will be consolidated into bigger groups.

Some JVs are happening between other oil and gas players at this size in the US and England to compensate for a greater hedging program.

I still think SXY is worth about about 45-50c and it, like other oil and gases of this size, will go pop at some point due to a POO spike, analyst rerating or interest from a deeper pockets investor IMHO but pls DYOR.