the deal?, page-7

MMP did you mean dribble or drivel in you initial response?

Setting aside just for a moment the necessary recapitalization that SEA requires, there are a few puzzling aspects here

1. PXD hasn't given any indication of the EFS assets being held for sale have they? Granted the EFS represents only about 5% of their Qtrly production so it is not really a material asset to them, but they will end up TILing 20 wells for 2017.

2. Why is it assumed that Elliott Mgmt is actually good for SEA common stock shareholder? Pretty obvious whose interests are looked after. All very well to say "bank debt is cheap" but it also comes along with a string of pesky covenants. Modus Operandi for these hedge fund guys is the unlock asset value (see their own write up of what they wanted with Marathon). Is their a hint of distressed asset? (shouldn't be with oil price rise ... btw have you followed headlines re GS raising 2018 to $82 and then the currency down/up commentaries). Why would Elliott take common stock in a recapitalization. Just seems "out of character" for them to be charitable.

3.  As you've pointed out, there appears to be a problem with payables, cash flow and liquidity. Othere than "The Eric" who isn't an oil man but a PE guy, why take on the problem in the first place?

Intriguing. Likely to not get the full story first go around. Given the market behaviour of past couple of days it appears like "risk off" is back in vogue.