Ann: Half-Year 2018 Results and Briefing Pack, page-39

Some people say SP is low in historical context, it depends on your starting point. I choose to value companies on their assets and their cashflow, not on their history.

It's not a question if Chevron have it wrong or not, but a question on what a commercial agreement will be. Are they talking pipeline and inter-connector to NWS, or more Pluto gas? are they going to pay some CapEX for sharing the infrastructure or will they go for a lower toll? There is currently no way to value this Clio-Acme comments. It's a bit premature to really speculate on any value or lack there of that a Clio-Acme deal might have.

The expensiveness of the HQ isn't the important part, there are plenty of studies that shows the importance of a positive office environment in boosting productivity and enhancing creativity. It's actually very common for O&G companies to move offices. The engineers and geologists use high end computing and have data requirements well above your average white collar workforce. It's very difficult to retrofit a building with new technology when it means having to rerun cables from server rooms to peoples computers without interruption. The old building is leasing from 585/sqm PA, apply that rate to the new building floor space and you are in the 30-35 million per year range, sure put people in a dark warehouse and you might save a few million, but people will leave, and will resent their employer for being cheap. Any of the 31 floors which are predominately geology / engineering staff will likely cost the company more in wages than the rent for the entire building.

The coming LNG shortage isn't priced into any company mayor LNG players at the moment, it's too far in advance (4-6 years until it starts) today's shareprice hardly values any growth either. Of course valuing a company depends on oil price and exchange rate assumptions, my 70c and $65 oil long term might be a bit more bullish than yours...