Busting their nut? WPL could easily instead of doing Scarborough, have swallowed both CNE & FAR without much more than a burp... The only people busting a nut about SNE are FAR HC posters...
Take a look at the 2018 IBD day pack... SNE got a token slide, focus is on Scarborough, and for good reason, it's a true world class project.
At $100 oil - SNE generates 1.6B/yr for JV after taxes and government take, at $50 oil it's $600M at plateau, but phase 1 doesn't have a long field life. Within 3-4 years you are off plateau. Need to time that development right... Had it come on in end 2014 at 50ish oil it'd be off plateau now, declining production in an increasing OP world... FAR would be looking for phase 2 funding with significant unpaid phase 1 debt...
Scarborough, at $35 oil is creating $1.4B for the JV taxable profit and depreciation (but ignoring tolling to NWS and dom gas which is additional cash). Add on another $2-300M franking credits us shareholders will see.
There is a reason 35% of SNE only gets a token slide, there are major projects with better returns to focus on.
