All in all, I'd rather they not sell any assets until they sell the whole thing. That said, the combined company is 25k BOE, and 400 million in debt and 450 credit line...........(Debt 2 times cash flow) it needed to free up some of that credit line to generate financial flexibiltiy, and in so doing,f significantly lowered the debt to cash flow to a little over 1X.
There were 2 ways to do so.............1, issue about 45 million new shares, or 2, sell 1900 boe.
A bad management team would have done the former................our mgmt team did the latter.
As a result, the lower debt/cash flow rato means LRE now deserves a higher cash flow multiple. The greater financial flexibiltiy now means LRE should have a higher production growth rate.
One more step in the right direction.