P/E is high because future prospects are high and historic ROE...

P/E is high because future prospects are high and historic ROE is consistently high. Companies like this command a higher than market average P/E. It's P/E has been hovering around the 20s for more than 5 years, so I wouldn't say that it is overly expensive relative to the market.

If you take the negative outlook approach then of course it looks expensive, but I'm betting they will deliver on their expansions, the price of oil will continue to rise and that they will strategically invest in any significant emerging new-energy markets as well.

Remember how high WPL ran when oil was on the fly??? The company is more valuable now and has a much lower SP. So does that mean it is cheap atm?

The SP of any stock at any given point in time is driven by market sentiment at that time. Everyone was negatively focused on Shell selling a big portion today, but why not take some chips off the table to reduce debt while the $A is so high. I mean, they still own a huge chunk! I sold 20% of my NCM holdings today because I was very happy with what was in front of me, but I still hold plenty and expect it to keep rising over time. Similar to Shell's thinking, I suspect, on a minnow scale.

I think WPL was at a fair price 2 weeks ago...and although there was a little spike in between, I think it is still fair value now.