Although Rtg to 'B-' from 'B', Outlk to Developing from negative. It looks this Rtg game is tied with JPM downgrade previously.
If Davy Jones flow test comes out very good, will the outlk turn to positive? So, why downgrade now instead of waiting the result of flow test since this rating doesn't tied with stock price, but cash, cash flow, earnings, etc.
My take is that the price of natural gas is responsible for the S&P downgrade. Going from B to B- is a downgrade.
So, two things can happen. Davy Jones will complete as expected. And, the price of natural gas will head higher from here.
Both issues will be resolved in MMR's favor. All the discussion about reserves and production are irrelevant. Anyone who knows this company knows the current production is miniscule compared to the future discoveries and won't be material in any way.
I'll be buying tomorrow. Thanks S&P for the cheap shares.
It is going to take a while for the excess supply to be worker off as there is a lot of gas in storage for a cold winter than never came. It looks like most companies are slowing down dry gas drilling as price make it unprofitable. How long will it take for a price recovery from past trends? Can any long term gas people provide answers?