For something completely different - as in not about EFS or...

For something completely different - as in not about EFS or shale plays.

As a holder of EXXI (via its acquisition of EPL - which I took up their combo offer making the shares pretty much free carried) this article and the ensuring comments discussion really is does a good job of highlighting the issues of debt, leverage, cash flows, CapEx  and liquidity within the domain of falling oil price (or rising).

http://seekingalpha.com/article/256...-leverage-weak-energy-prices-good-short?ifp=0

(The link only good for a couple of days)

Now to make it relevant you could substitute HK with their debt, liquidity and Capex and see what may.  I wonder if HK will put its TMS plans on hold for a while and concentrate more on El-Halcon and Bakken (although Bakken does have a location disadvantage).

Good reading IMO.

(also picked up some cheap WTI (the stock not the index) and COP in a brave moment the night before last. Feel smart this morning but lets see in a months time. Missed out on EOG and CLR).