April 14, 2016 GV closed at $2 per share. If the earnings for 2nd qtr are as good as the first quarter we will be well over $5.
The next earnings report and conference call should be interesting. The US rig count is up 10 this week over last. Maybe the bottom is in, but profitability sure seems a long way off.
Oil rig count down 7 for the week of June 24. This comes after an up week where 9 were added.
This past week. Gas rigs were up 4 in NA with two being in the Haynesville play.
A year ago Haynesville had 27 gas rigs it now has 18 which is up and last matched in January. Does this mean that a gas recovery is underway in Haynesville?
This then is a bullish move As I understand your view, Davis is being focused upon business growth in a time of opportunity, something at which he excels. Jones is a steady hand, and more managerial expertise is being sought to further built a leadership team for an expanding organization.
This change is curious. I note that there is a search for a replacement head of PCA.
PCA has two subsidiaries SEP and C&C.
In 2013 Davis was made President of PCA and SEP; now he is Exec. VP of PCA and responsible for C&C and a part of SEP while Davis is interim President of PCA and SEP. Jesse Colley was (is?) President of C&C.
Is this like the Chicago Bulls with a young Michael Jordan progressing to the playoffs under Coach Doug Collins and the owners then changing manager’s to Phil Jackson to build on that success and take it up yet another level?
If you want to read an optimistic article about the demand side for natural gas exports that mentions Haynesville see: Well since yahoo doesn’t like links try: aogr[insert the comhere and the "w"s before]/magazine/frac-facts/lng-puts-new-demand-on-shale-plays
U.S. gas drilling rigs increased last week by 3 after falling by 5 the week before to put the number of rigs at 85. Through February the gas rig count was over 100. The low was 82 for the week ending June 3, so maybe that was the bottom. Oil rigs started to climb the week ending June 3 and continued their climb last week.
Not sure where in the U.S. those rigs are placed.
I think that producers are lining things up for when the economics make them feel like it is time to pull the trigger on new wells. They are probably getting deals set with what they view as good contract rates in the present downturn, so they can lock in those rates for a period of time (short of like an option) without taking the risk of drilling right away. It seems that everyone expects the prices to rise late this year and into 2017 and who knows when they will actually feel comfortable drilling. Rig counts are still falling I think.
My sense of the conference call is that the AZUR executive team is working hard at making balance sheet improvements and managing through these tough times for midstream companies and that there is cause for optimism on the horizon and that 2017 should be a much better year with expectations and clarity better defined by this fall, maybe by the next conference call in August.
I think your speculation is reading too much into your expectations of the call. There was nothing intimated to indicate that anything was delayed or changed. Nothing from AZUR suggested that they had a “contract they were going to announce”.
AZUR did state:
1. Staff reductions last week of ~30 people for ~$2 million/year in cost savings.
2. Delsiting was due to market cap falling below $15 Million, which in turn was due to the deal removing about half the units from those outstanding without a compensating doubling of share price (in the long run this would seem to double the value of the remaining outstanding shares, in effect a 50% share “buyback”)
3. AZUR signed a contract with “a large producer” that is in the planning stage for drilling new wells, but apparently a final decision to drill has not yet been made. Here AZUR has the assurance of having the business IF and WHEN the wells are drilled.
4. Executives have been advised to not purchase shares due to their ongoing insider status relative to turnaround efforts presumably to avoid SEC violations on insider trading.
5. Expect no asset sales before next confenece call in August.
6. Working on extension with bank past June 30. (My sense is that they fully expect to gain such extension which seems likely in view of AZUR being able to continue its interest payments. Only certain covenants are in nocompliance and there is no incentive for the bank to do other than grant an extension.
A CEO that I am guessing doesn’t like blathering on and hyping his stock. It is a fairly straightforward business and there is no need for constant PR to keep shareholders informed, although there has been a few times in the past where too little information was disseminated or it was done too slowly e.g. regarding the weather issues. However, overall the company is not so complex as many big companies. If there were conference calls with analysts, do you think we would see top analysts assigned to a $79 million market cap company? Or is it more likely that we would see the analysts trainees who would as oft as not get things all bollixed up?
While I like the company and am eager for news of its growth and even its miscues, I cannot fault the CEO for not playing the blathering hype game. I like substance. If I want blather I can always go to a school board meeting.
From Yahoo SUMMARY page tab:Key Statistics
Market Cap 72.54M
P/E Ratio (ttm) 118.75
Consistently unreliable financial information from the Katie Couric network
Once in a great while, but mainly check in for posts by you and mk54321; it is one of the better message boards.
The oil downturn is different because USA fracking technology has upset the apple cart. Rig counts still falling after last week’s rare pause. I watch HP with amazement that the stock hasn’t dropped further with the drilling collapse. Living off of termination fees and paying dividends with borrowed money they are betting that they can wait the downturn out better than anyone else and maybe they are right.