McMoRan Exploration Stockholders - Take the Money and Run

Despite the uncertainty surrounding Davy Jones and other ultra-deep wells, Freeport (FCX-$33.50) hasn’t shut out McMoRan Exploration (MMR-$15.69) investors completely. In addition to the $14.75 cash offer per share, the metals miner will issue 1.15 units of a royalty trust that will make payments – should any of McMoRan's existing ultra-deep exploration properties (in development) actually start-up producing natural gas and other hydrocarbons. Further, the trust could be callable in six-years at an implied valuation of $10 per unit (not bad for “dry” properties).

Continue Reading at YCharts: Ingrates! McMoRan Exploration Holders, Given Drilling Failures, Should Grab Takeover Offer

Editor David J Phillips does not hold a financial interest in any stocks mentioned in this article. The 10Q Detective has a Full Disclosure Policy.