Hope ol' Steve isn't facing a serious health issue that requires immediate attention. Speculation in Houston around a deal in the works. Some are guessing the spinoff is at hand and others that a merger soon will be announced.
You're mostly wrong. Suspending the dividend was a voluntary move to preserve capital in the current environment. XCO's credit agreement contains a provision for semi-annual redetermination of the borrowing base by lenders. The last review occurred in October and resulted in an increase in XCO's borrowing base from $87M to $900M, to remain in effect until adjusted under the terms of the credit agreement, as well as an increase in the ceiling for dividend payments . The next scheduled review is in April and may result in lower borrowing capacity and stricter limitations on uses of cash or incurring other financial obligations, but the possibility of bankruptcy is nothing more than a short seller's fantasy.
Working gas in storage was 3,432 Bcf as of Friday, November 21, 2014, according to EIA estimates. This represents a net decline of 162 Bcf from the previous week. Stocks were 346 Bcf less than last year at this time and 400 Bcf below the 5-year average of 3,832 Bcf. In the East Region, stocks were 183 Bcf below the 5-year average following net withdrawals of 89 Bcf. Stocks in the Producing Region were 166 Bcf below the 5-year average of 1,257 Bcf after a net withdrawal of 55 Bcf. Stocks in the West Region were 52 Bcf below the 5-year average after a net drawdown of 18 Bcf. At 3,432 Bcf, total working gas is below the 5-year historical range. (EIA Weekly Natural Gas Storage Report)
El-Erian: Something has to give soon in Russia (SA Breaking News 1:36 pm)
“The [Russian] central bank’s retreat from propping up the ruble highlights the fix the country is in," writes Mohamed El-Erian. He notes the central bank's initial intervention response to sanctions helped halt a disorderly decline in the ruble, but the collapse in oil prices and pickup in capital flight have overwhelmed this strategy.
"Something will have to give in the next few weeks. The country’s foreign-exchange situation could spin further out of control, at one extreme, or the Russian authorities might respond strongly with a range of fiscal and monetary measures, on the other, including higher interest rates and spending cuts." Either one, says El-Erian, is sure to pressure economic growth even more in the short-term.
LOL. Did a Google search for a GS call on XCO and only came up with articles saying Goldman Sachs was wrong on gold, bonds, stocks, bitcoin, private equity, World Cup. Seems their models are no better than others, although admittedly their calls move markets for a day (enabling short covering yesterday from what I read).
"EXCO may consider acquiring oil and gas entities or properties owned by or affiliated with the candidate who is ultimately selected." (EXCO Resources, Inc. Updates Status of CEO Search, Business Wire, Oct 10)
See, XCO needs the Permian acreage that KKR and Porter Trimble just acquired from LINE.
Did WLR say anything about his losing investment in OCN? Another winner.
No, if you read the article, APA is the pure upstream play exposed to falling crude prices and XOM is the integrated play with midstream and downstream assets to benefit from falling crude prices.