Chrys, I agree the (oil) market is irrational at present .... or at least it seems that way. If there truly is such a growing oversupply and shrinking relative demand for oil then its we who are irrational ...
I don't agree that numbers are not a factor. Deals (made between people not bots on an exchange) are based on numbers ... even those made on a handshake in Texas. There are good deals and bad deals made everyday. Each person (team, side, company,...) in a deal has their view of the future and what do they base that upon - just their gut?
What makes Terry Barr so special? What does he KNOW that others (T-Rex, Kinder, Lance, Lawler, Hamm, Pickens, Einhorn, Icahn, Marks, etc, etc, etc,) don't? I'm not kidding myself. This oil market will change the fundamental way in which E&P (what's left) goes about their (the newly instated owners) business. I'm prepared for 6 of my investments not continuing in their present shape - and by that I mean the common equity shareholder not the company itself as it will restructure and recapitalize). So NO, not buying a single thing!
I've already given TB the kudos for at least trying to engineer a deal that makes SSN more attractive to MOB.
Now you can't have it both ways (at least here). You're (plural form to include others) happy to put up all kinds of "numbers" on OAS for example, then ask questions. Here's one for you. No numbers here (unlike yours).
1. Do think banks worry more about loans with:
a) oil companies with current debt and no present way to repay them
or
b) oil companies with longer term debt maturities that have the present liquidity to repay them
Leads to a second question ... How long can SSN last with its present negative cash return on each of its Bbls produced?
(Williston Basin Sweet quoted $17.25 yesterday (approx -$8 differential to WTI) - be thankful its not sour at $8.65)
Buc are you doubling down? To coin a phrase .. serious money to be made (SSN up in the oil rout at present).
SSN Price at posting:
0.3¢ Sentiment: None Disclosure: Not Held
