@zereal ...no Ch 11 has been suggested by any Company Announcement. Their actions (or lack of) are be compared to others. However, be aware that Ch 11 is a form bankruptcy ... it is (primarily) a restructuring of debt obligations. The company survives (and will continue to operate through a Ch 11 process) but most often the common equity shareholder is wiped out.
@tt2000 ... I agree with some of what you say. Forecasting oil price is challenging. It will get to $40??? By when though.
TMB Yep, I think that not even SNDE knows what's going on.
From the CPE call today (remember CPE bought CRZO - another of the peer companies in the IER for redom). The CEO read a prepared statement for the Qtr and then ended the call (and no analysts were noted as attending the call).
They've suspended all completion operations until at least Q3'2020 and voluntary curtaillment of 3,000 boped (May onwards). This is a small amount since they produce ~100 Mmboepd. The have also hedged 60,000 bopd with swaps at $43/Bbl ... 100% hedged. Their BB was effectively reduced from $2B to $1.7B (they had only elected for a $1.7B to begin with) and are drawn to about $1.35B ... so no drama their. They are in the market to restructure their long term notes ($1.9B). Their leverage test is 3.0X and Q1'20 EBITDAX ~$217.5 which puts the Net Debt/EDITDAX at a comfortable (?) 2.8X and secured debt to EBITDAX and about 1.2X
I mean its not a bad report is it? And yet the market seems to have written them off .... if you put MRO/CPE/PVAC/SNDE on a list and rank them whichever way you like which is the one least likely to remain ... (not LONE not on that list, or CHK, ...) .... certainly can add more to both lists but this is a game of survivor at this point IMO.
SEA Price at posting:
16.5¢ Sentiment: Hold Disclosure: Held
