[okie01]

Expected cash flow will shrink, thereby shrinking expected profits, hence the value of the company.

Shutting down the well and reducing cash flow to zero will shrink profits even faster.

[sagar]

“Shutting down the well and reducing cash flow to zero will shrink profits even faster.”

Well, the other side of the argument is that a zero profit is better than a negative profit. It all depends on how much reduction in price can the companies take before they decide to just stop.