Thanks for help guys - still in my too hard basket... Don't even...

Thanks for help guys - still in my too hard basket...

Don't even want to think about $50 Bbl. from the pure play shale E&P companies, IMO maybe only EOG could do it at that price and possibly PXD and CLR.

Not too sure how to read the report Sam - the trend looks like HK improving but it misses the whole point - how stressed is the company at $80 oil index (or less).

Hence only going to their Qtrly and using their specific numbers and making the extrapolation.

Now the area I'm not fully understanding is the DDA expense and its relation to the Capex and whether its a "cash expense" - everything else is cash going out the door.

I'm very uncomfortable with HK at $80 WTI (yes they have some hedges). Hence the Q3 call will be very interesting and I hope an analyst asks the question about how the company performs at $80 oil

The other thing is when I look at their corporate presentations for example their FBIR Bakken production says the IRR is 60% at $80 oil; Williams Ct Bakken 18% at $80 oil; El-Halcon about 30% at $80 oil and the TMS also about 30% at $80 oil.

That of course is theoretical return - the Qtrly are actually what happen and report.

Q4 will have Reserves writedowns across the sector if $80 is the Strip pricing.