A couple quick nitpicks on the $ARCH post. First, I was working towards a free cash flow number and thus I excluded both ARO accretion and non-cash G&A. On the former, I feel fine as accretion is non-cash AND I backed out the ARO from the EV, so it is not 'missing'. On the latter, I should probably penalize the company in some fashion (I could simply just increase G&A, or I could grow the share count by a couple hundred thousand shares per year). If you want to keep it uber simple, just add about $10M to G&A per year (it's probably overly conservative as we are functionally 'selling' thermal in '23 by only capitalizing it at 1x, but I digress)
I will post separately about the convert and how we can handle that more cleanly than the way I initially modeled it later today
A couple quick nitpicks on the $ARCH post. First, I was working towards a free cash flow number and thus I excluded both ARO accretion and non-cash G&A. On the former, I feel fine as accretion is non-cash AND I backed out the ARO from the EV, so it is not 'missing'. On the latter, I should probably penalize the company in some fashion (I could simply just increase G&A, or I could grow the share count by a couple hundred thousand shares per year). If you want to keep it uber simple, just add about $10M to G&A per year (it's probably overly conservative as we are functionally 'selling' thermal in '23 by only capitalizing it at 1x, but I digress)
I will post separately about the convert and how we can handle that more cleanly than the way I initially modeled it later today