We're all reading now how Cushing is loaded to the brim and that much of the price supports in oil are future related in that the big outfits are creating the demand for oil only to store it and use futures to lock in profits way out into 2017. This trade will lose its luster though once supply space becomes more limited/costly. Until then it looks like more of the same unfortunately for us here.
I agree, he's posted many informative and to-the-point ones here. Too bad we're not talking in a more upbeat mood.
Has been for moths sir. My broker and I had major battles over this selection of his. Where's he at now? He retired.
I agree 100%. He got caught. And obviously it happens to the best of them. No buyout IMHO with this debt load. No sudden spike in NG either when we're flaring off over $100M annually in America alone. There's just too much NG in the world as there is in oil right now. Oil descending could very well serve as XCO's and others demise. Very painful indeed when you think we could have sold at $9.
Oil is down today and there are MAJOR derivative plays (short orders being formulated as I type) in the oil markets. There are major bets going on in the last 3 days. Believe me. That cancelled second offering isn't helping either. The thinking is there weren't enough buyers. In other words like willy has stated why buy now?
They're in the derivative market so as to service their debt is akin to using one credit card to pay off the other.
Down 33% YTD. Down 59% lat year. Down 21% 2013. Say what?
The article was hard to read and digest for sure. However a direct opposite article within that group was less difficult to read. How long have you held XCO if you don't mind me asking?
You have more faith than do I. Nothing is going our way here with XCO or even say CHK. Jubak put a buy out with a $19 target on CHK. Takes guts but he is a person I watch very closely.
It's a very expensive endeavor shipping NG overseas. That's what has kept the price depressed w/o a doubt. Look at CBI. Big time in the NG exportation via LNG. My buddy's wife is currently working on that facility that Cheniere is building and she has lost a ton of her pension as a result. We're just flaring it off instead of selling it.
Maybe he can buy it indeed and wait it out because he's got a boatload of money. I've never owned a POS like this until now. We are all hoping for the best here but where is the good news going to come form? If oil does in fact hit the triple dip and goes to say $40 many stocks in the oil/NG arena are DOA. XCO might be so already.
My just retired stock broker (who unfortunately put me into XCO) used that $20 buyout as some of the reasoning for owning it. What he didn't say was this supposed deal was all BS. It had no chance because this company is nowhere near worth that dollar amount. Obviously.
That's what to be expected down in here at these prices.
There will IMHO be a major unraveling of all these derivatives (in the trillions) in the oil world sooner rather than later when some sort of equilibrium is reached. Then watch out, for we'll see a big move in oil. In that the traders will try to get a one-up position on the trader next to them. Just like when it dropped precipitously from the $100 mark.