Quote:
Originally Posted by Clarkey
What is the implication of this? Why couldn't the organization split into different org units while still staying under the same banner company? .
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A big reason is for market valuation purposes. Heavy oil and natural gas have different risk / reward profiles, and appeal to different investor appetites. By giving investors the discretion to invest in one division but not the other, you attract more aggregate demand. More demand = a higher combined price, which is in the best interest of the shareholders (and the company, because it gives them a cost of capital advantage)