If you have heard the saying he who controls the debt controls the asset rings very true if bad economic times hit. So Macquarie do play a smart long term game and may even get one of STX's assets if bad times hit for basically the debt they issue now. Its probably where STX need to smarten up cashburn wise.
For example there is no reason another Walyerling well is currently needed to be drilled in the next 3 months as they have enough wells for the next 5 years of production, or the Farm in with TEG which will probably add nothing for STX and will cost 15-20million for these items.
They should be focussing all their cash to the power plant, WE and maybe one Ocean hill well.
STX Price at posting:
17.0¢ Sentiment: Hold Disclosure: Held
(20min delay)