Oil production from the Organization of the Petroleum Exporting Countries climbed to its highest monthly level since Aug. 2012, according to a Platts survey of OPEC and oil industry officials and analysts released Monday. OPEC production in June rose by 170,000 barrels per day from a month earlier, to 31.28 million barrels per day. OPEC is now pumping nearly 1.3 million barrels above its production ceiling of 30 million barrels a day. Output from Saudi Arabia edged up to 10.35 million barrels a day. The survey comes as oil prices hit their worst level in months. August crude CLQ5, +0.49% suffered its worst one-day drop since April, falling $4.40, or 7.7%, to settle at $52.53 a barrel on the New York Mercantile Exchange.
This could end very very badly. Hamm bet the farm by taking on massive debt and buying back CLRs hedges.
If the world starts slowing down now, CLR could be BK in a few years.
And last Thursday oil was nice and green and then had a pretty big reversal to end the day in the red. Oil is crashing and shale gets hit the hardest. Shale stocks were rallying off their lows in hopes of oil going back to $100(pipedream)by the end of this year. Well, it doesn't look like that's going to happen and the lows are probably going to be tested. The FDIC came out a few days ago warning banks to stop lending to shale companies that can't pay their massive debt back so you're going to see banks start to pull the plug in this trainwreck sector. And most of these shale companies survived only because of their hedges. Well......... those lifelines are about to be over and done. And CLR dropped all hedges WHEN OIL WAS $80!!!! HAHAHAHA This Hamm guy is going to bankrupt this company sometime next year.
Glad I came across these guys. They literally made me $600 in 2 hours. Ultimate Stock Alerts (you can find them in Google)
I think it will go below $30 this time around when oil falls to around $45. It will be brutal for clr this time around. CLR pays as much in interest as EXXON and EXXON is at least 20 times it size.
Sentiment: Strong Sell
They have size and maybe as the saying goes, if you owe a lot of money to a bank and can't pay, you own the bank. They will have to work out something. It might be the dracualian type deal CWEI struck with their bankers, where they were forced to take on low priced hedges, which protected the banks but severely limited earnings for CWEI in the hedge time period. Unless they have dramatically improved their net revenue per well by having massive increases in drilling efficiency, they will have blown through most of their revolver by now. When they report the 2nd qtr. results and show just how bad off they are, it will drag down a lot of the other shale oil drillers.
Sentiment: Strong Sell
Last year in July is when oil started its crash. Will this prove to be another down month retesting the lows? CLR was $80 at the beginning of last year's crash, now it's $40. Hmmmmmmm
And Hamm doesn't have any hedges in oil. CLR could be in for a brutal month here.
DLHCis a stunner under $3 and news that it has just made $15.9 (a record) in Q2 is driving Wall Street crazy. Can it go all the way to $5?
Year after year, quarter after quarter this company's capital spending exceeds its operating cash flow - not by just a little, but by a lot. When, if ever, will it have any free cash flow?
Debt is high relative to equity and revenue. What is to keep this company from going the way of other over-leveraged companies like XCO and SD?
That's 25% of CLR revenues and assets at stake. Who knows how many billions in damages and I doubt they are covered by insurance for causing earthquakes