It's called a cycle. One of many oil and gas cycles. There are always a lot of morons that believe prices will stay down forever and are probably the same morons that believed high prices would last forever. ORIG needs to survive two more years for contracts at reasonable rates to return. 750M cash buys off bonds with a little cushion left. If they can address the new builds they survive for better times. If not they can't make it though 2018 when the second newbuild is due. You may not be paying much attention but they are receiving large termination fees and have a 2.2B backlog excluding termination penalties. For example Apollo will earn 400M in penalties if not redeployed and is not in the 2.2B backlog. 95% of original contract value for a little more than a year and then 50% of original contract value there after.
Largest one week drop to date of 249k barrels per day. We are currently more than $1M bpd off our production high. This is despite recent increases in rig counts in the US. It appears the US alone can bring WW oil supply/demand in balance if demand projections are correct. Meanwhile NG supply is edging closer to be withing the 5 year supply range.
Still no S3 or S1 registration statement filed. There are reporting requirements for an S3. I have a theory that they may have been required to file one 10Q as newco for relisting but don't see that as a hard requirement anywhere. A 10Q is probably a month away.
Looked deeper into the 105k per day vessel, Aban Abraham. It was build in 1979 and is 37 year old LOL. It appears to be a small very ugly looking vessel in the pictures so I would not worry much about that winning bid. Not likely to be another vessel that old out there.
Cancelled 4 months early two days ago. No indication if ORIG will get penalties for early termination. Google mylos termination Repsol and pull up the seeking alpha article. The worse part was that the winning bidder on a recent UDW vessel got a day rate of 105k on a two year contract. After looking it up, I am not sure I agree it was really a UDW contract. The vessel was retrofitted in 2009 to go to depths of 2000 meters. Noone else bid under 149k per day with Transocean as the second lowest bidder.
I hope ORIG sues for early termination fees to continue to set an example.
I have never received a reply using the complaint/whistle blower form, but have seen action taken after I submitted. What was your form of communication with the SEC and are they going to do anything about forcing retirement of the treasury shares?
Holding steady at about .55. The drop in equity value probably had more to do with voting power which GE now controls 51% of. He can run this like his private company now as he did DRYS. Unbelievable that institutional fund managers did not understand the ramifications of treasury stock in a Cayman Islands company. I would have called the companies with the top number of shares if I had known they were ignorant in this area. However this could have been a formality and GE may have just voted his 51% since a change in domicile typically does not require a shareholder vote. One thing for sure, if he steps down for any reason we could see a 2-3 bagger in stock value in a few months.
RIght, the 60M went to preferred stock. This sweatheart deal at approx 30 cents on the dollar has effectively wiped out common shareholders
I don't think he could vote the treasury shares since until the proposal passed they redomicile was not complete. It really does not matter any more though. GE and his sister now control the company completely with more than 50% of the voting power. They can now run it like a private company as they did DRYS. I am surprised the stock price did not drop more today as a result. I think a lot of shareholders still do not understand the ramifications.
Currently we just above the 5 year average for NG storage. However two events will greatly increase demand over the next several years. 1) NG pipeline to Mexico and 2) Move from coal to NG for another 20k megawats of electricity.
"The mid-Atlantic grid, which stretches from Maryland to Chicago, has been ground-zero for coal-plant shutdowns as the generators compete with gas burners that have access to the cheapest supplies in the country. In that network, the largest in the U.S., about 20,000 megawatts of gas-fired plants are projected to connect by mid-2019, said Paterno, or enough generation to power for about 20 million homes."
3. the approval of the special resolution required pursuant to the Companies Law (2013 Revision) of the laws of the Cayman Islands to adopt the Company's Amended and Restated Memorandum and Articles of Association in compliance with Cayman Islands law.
Did shareholders just not know that they handed all future votes over to GE? Most of the share are in funds. It is odd that fund managers would be that ignorant.
I would not sell at the current price with $3 natural gas but if it pops for a period of time I might sell some.
My cost basis with TD Ameritrade is way off. I calculated it and asked them to correct it. They said the stock basis from the bonds and DIP financing is off because the bonds and warrant values will not be corrected until the stock trades on an exchange. Not sure what I will need to do it I sell some now and the basis is not adjusted by year end.
More like a $600 chair for $60 that rents for $.6 per day in good times and 30 cents per day today. It costs about .25 cents to haul the chair back and forth but there is no financing costs, so profit today would be low but positive. Better to wait a year and rent the chair at .6 per day netting .35 per day, or sell the chair for $40 any pay down on some of the other chairs. Note that the $60 chair can be scrapped for about $25 so only $35 was ever at risk.
He has focused his theft on DRYS since by funneling ships and services through his private companies, buying a a bargain and dumping junk like his oil supply ships onto DRYS. He has stayed away from ORIG until now. His first step was to take a controlling interest in the voting shares which he had after the Cayman Island redomicile. Shareholders like me filed complaints with the SEC and forced a vote. If the third item on the proxy is defeated we have nothing to worry about. If it is not, GE will steal the best parts of the company for himself. His sister is on the board and his nephew is a executive VP. Everyone else is a long time friend. There is nothing but shareholder votes that can stop him.
I am assuming NADL did not have deep pockets. Jurong may have other options going after ORIG for payment of at least the first vessel given the ORIG cash position. I hope they dont wait for the last minute to resolve this.
You can still vote or change your vote to defeat the Cayman Island redomicile. GE will have full control of more than 50% of voting shares if this goes through since treasury stock, only in the Cayman Islands, can be voted. Vote AGAINST proposal 3.
While at it I would withhold a vote for GEs sister, Chrysoula Kandylidis.