Of course, there is a risk. However, this does not seem to align with Prax’s behavior so far. If their intention were to disadvantage DCU holders, why would they buy the total assets? Hurricane also had significant tax loss carry-forwards, which Prax seems eager to utilize as soon as possible.
Additionally, there is a DCU representative, but from my understanding, their main focus is ensuring the correct calculation of the revenue share.
"Since payouts are 100% determined by revenue from oil & gas extraction, price volatility is a key risk."
Revenue is price x volume.
Could volume be depressed by (scheduled) maintenance?
Ie, do maintenance within last few months of eligible period instead in the year thereafter
Of course, there is a risk. However, this does not seem to align with Prax’s behavior so far. If their intention were to disadvantage DCU holders, why would they buy the total assets? Hurricane also had significant tax loss carry-forwards, which Prax seems eager to utilize as soon as possible.
Additionally, there is a DCU representative, but from my understanding, their main focus is ensuring the correct calculation of the revenue share.
This is initially what I expected too. Would be the smart move & they are canny operators.