I was an oil and gas accountant too from 1963 to 2013. Every company, except one who shall remain nameless, either went out of business, was sold or went bankrupt. But that was ok with me because I picked up at least 5 years of severance pay over my career. I worked in Haynesville when it was spelled Hainesville and was in East Texas.
Willie Mae, with all due respect, I've forgot more about natural gas than you'll ever know. I sold my first mcf in Western Oklahoma in November 1963 for ten cents and thought I was getting a heck of a bargain. Haven't missed too much since then.
I still don't understand. If XCO files bankruptcy wouldn't Bluescape have to get in line with the other creditors? Looks to me like bankruptcy is not a moneymaking event for Bluescape while stock appreciation is. But, heck, what do I know.
Schlang - I'm a dummy. What does it say in the Agreement that would make Mr Wilder ok with blowing off a $6MM investment in XCO stock? Or, to put it more simply, what does he get in the event of bankruptcy? I must have missed that part while reading the Agreement.
Why would Wilder take Exco into bankruptcy? He just spent a few million buying stock and I don't think he would just blow off that money. It seems that it would be to his benefit to keep the stock trading but maybe I'm wrong. Anyone care to explain why I'm wrong?
Unfortunately, the oil and gas industry is full of defunct companies whose management made big discoveries and proceeded to ruin the companies by drilling too many wells too fast and paying themselves exorbitant salaries and making questionable deals with their buddies. I think it might have something to do with most of them being from Texas. It seems they really believe the "big awl man from Texis" mystique which never existed in fact.
I doubt Roger Plank and Steven Farris swing much of a stick at Apache seeing as how both of them were ridden out of Apache on a rail. Both took "early retirement" to "pursue other interests". The only person who ever really made a difference at Apache was Raymond Plank who is 94 y/o and I don't think he owns any stock in Apache. The current BOD and management will call the shots on this one.
The same thing happened in the 1980's. Jimmy Carter invented the NGPA and production went straight through the roof. As I recall, at the height of the boom, 4,500 plus rigs were drilling for ng. Of course Ronald Raygun destroyed the boom by dismantling NGPA. It took 25 years for prices to recover.
I don't know why they need one. I don't see any advantages for XCO to be listed on the NYSE. OTC would be just as good and a lot cheaper. Maybe the banks are pushing them to do this. Since they've already spent a bunch of money for this exercise, I'll hold my nose and vote for the split. I don't think anyone has ever accused the EXCO BOD of doing anything for the benefit of shareholders other than themselves.
hey stocksgirl - since you are so frickin smart and like to share your intelligence without being asked - I've got a question - do I buy low and sell high or is it the other way around? Gee, I really appreciate having a sexual intellectual posting on this board.
The large funds, (Fidelity, Vanguard et al) have probably already reserved for SFY to be worth nothing. Same as banks have probably written off most if not all of the loans. These guys aren't dummies.
You usually talk to the lead banks only and they spread the word to the syndicate. It would be almost impossible to talk to every bank. That said, if any of the syndicate does not like the results of the redetermination, they can drop out. If that happens SFY has to repay the portion of the drop outs or get some or all of the other banks to assume the dropouts share of the loans.
I think you may be wrong. One bank said yesterday that their redetermination price is $37.50 unless there's a dramatic price increase in the next few days (before the end of September. The banks are worried that the bank examiners are going to review all energy loans with a fine tooth comb with an eye towards determining if the borrowers can pay back the loans in the allotted time. This is what they're hearing from Federal and State bank examiners. The one thing no one has mentioned is what the price will be used for natural gas and NGL. The IR guy at SFY might want to think about what he's telling the investing public.
I remember when it was a $150 stock. The big shareholders and management could have easily sold CRR for $200 or more per share but for some inexplicable reason didn't. I will never understand that.