And the stock wad doing very well this AM after that article today. Then the market sold off. Lower oil prices hurt the S&P 500 more than it helps it so it seems. Many an energy play listed.
Why would Mr Wilder (who many here have called smart) throw $40M into XCO now? It, and many more NG plays, has/have lost 90% of its price in one year. Absolutely nothing is going right here. Nothing. Now a delisting is obviously forthcoming unless a reverse split is OK'd. Restructuring actions will buy some time as will asset sales and more hedging usage but it all boils down to pricing powers or in our case lack there of. If NG/oil doesn't rebound XCO and many more are toast for sure. Look at XOM's numbers today. They were terrible. But they have zillions to fall back on. XCO doesn't. And why is XCO at $.50 when oil is $47? When it hit $43 it was $1.30?
Mr Hickey said about that: We're going to look first at monetizing certain of our PDP, but we've not gotten specific as far announcing which are those assets we're actually going to put on the market.
I'm sure the higher ups know what assets to keep and what to divest. At least I hope they do. A lot of high stakes poker going on I'm sure in many an oil shale board rooms today. They've had a real joker dealt to them via the Saudi's card dealing as of late.
I firmly believe that if any of the higher ups at XCO do not know what this company's probable future holds they shouldn't be there. But that's me.
No, I have no oil/gas leases but a many luxury car ones. We keep copious accounting records of our clients (businesses) financial situations sir. Obviously you don't engage accordingly as do we.
I would think though you'd be on top of this company's financial situation as you have an integral interest to do so? But that's me.
You have leases with them and you haven't had frank discussions about whether they are going to be around to service your lease payments?
We keep hearing supply side reasons for this energy malaise. The dollar too comes into discussion. And both are sensible explanations but why didn't Mr Ross and buddies see this imbalance in supply forthcoming in NG due to the fracking boom? And why didn't the energy experts see oil being cut in half in 4 months? How did they get these jobs and/or become so wealthy if they missed these scenarios so radically?
One trader at the oil exchange bought gazillions of puts on the XLE and made a cool $24M. In less than 4 months. He was quoted that he saw an inventory list of tankers that were full to the brim just sitting off the coast of Nigeria was all the info he needed to make this big bet. You mean he was one of the only persons on planet earth to pick up on this supple side anomaly?
We are at more than 15 year lows in some of these commodities. Including the dollar to euro exchange. Why? Somebody on this planet has the right answer(s).
Agree with the $40 stuff. DWTI is volatile but oil's run up to $60+ was all BS. A relief rally if you will but as we all know here oil and NG are w/o a doubt in a bear market. And now Iran wants some of this action. Nothing here but misery. One question though why am I paying $2.79 per gallon when oil has sold off 15%?
So says the financial experts today. No kidding? Oil was cut in half in 3+ months and where were these so called experts then? NG is DOA at its peak season, summer. We have major debt levels to deal with and no pricing power. Everything that could go wrong has and then some. XCO 52 week high was $5. Hard to believe. NG plays have been killed this year. Commodities in the tank. Strong dollar. What a kick in the #$%$.
You should know all too well son about disasters. Just another yahoo loser w/o a life here.
Totally oil related. It's dropped from north of $60 back under $50 very quickly. UAL still down over 14% YTD. Capacity woes harming all of them now.
We, us, they who cares sir? Demand is increasing worldwide and so is supply. Iran is a reason for the traders to make a case implementing a new momentum. China is in fact slowing and have been buying cheap oil for their reserves which has backed higher pricing. That is ending. Many a variable as to why oil is where its at. and yes you make valid points.
Is dilution a done deal here with XCO?
Good question/post vzar47b.
Of course it does but not until these hedge fund short positions are reversed it's status quo here. Dilution has been referenced here by the smarter folks and they're correct. But when being pressed one has to merge. I don't know if this is an ego thing here or what with the major shareholders but if they did merge they'd lose all chances of someday owning XCO in its entirety.
The airlines all have merged after exiting BK and are prospering now (although oil dropping has helped immensely). It's a matter of survival. Forget this Iran BS. It's the Saudi regime that has done all it can to deny our fracking industry. As for NG prices? They have been vacillating between the current and $5 over the last 5+ years. Exportation will help but the supply-side equation still favors depressed pricing.