Richard has given a much more detailed answer here than I ever could have!
Just a couple of things I'd add:
1. In 2019, E&P did propose the sale of the entire CD2 portfolio, at something like 17% below NTA. (I can't remember the exact structure, whether it was sale of the LP interest or whatever.) The timing was ridiculous - CD2 was about 7 years old and thus entering 'harvest' phase, which is exactly when the whole thing was meant to start paying off. The idea was thus very strongly voted down, and history has proved E&P wrong and unitholders correct; CD2 has since then been a great investment even with E&P at the helm. But despite that voting outcome, maybe E&P will soon again propose something similar just to try to be done with it all. If E&P did, then subject to acceptable value being delivered under the given proposal I suspect unitholders would now be a lot more amenable to the idea.
2. In my view such a proposal would have a very positive effect on the unit price, for a few reasons. Liquidating at say a 15% discount to NAV (ex cash) would still deliver a total return of some $1.47, so 15% above last trade. Perhaps we'd be giving up some longer term gains, but personally I could live with that (and, again, I think many others could too). In addition, even if such a proposal failed, its mere existence would have confirmed that an independent third party had assessed the assets' values and was happy to pay $X for them - and that would dispose of what I assume is market doubt re the NAV's validity.
CD2 Price at posting:
$1.27 Sentiment: Buy Disclosure: Held
