The object of the drop in oil price was not to kill shale producers,but to stop the lenders by destroying the shareholders and bondholders.If there is a investigation I'll bet the Saudi's made more money shorting oil then they lost by lowering the price.They say there our allies,but besides being behind 911,they also are behind destroying the new jobs the shale boom brought and also wiped out pension funds and bond funds who back the shale oil producers with finance,notice after all the shale producers went Chap. 11,oil is back to $50,the over supply just magically vanished.When it is proven that they were behind 911,all the families that lost loved ones should sue the Saudi's,take all thier money then cut off thier heads like Issis does. Why is the White House so quiet on the issue?
Goldman Sacks shorting it,they rule the market.
Res.,why do you think he bought 900,000 shares then resigned a few weeks later,very strange don't you think?
Sold my shares today,glad I got .57 will check back after rev. split should get shares around .40,Kharitonov needs to unload his shares,don't get suckered in with this 10% rise in pps,its a pump to dump,company burning cash,rev. split &Khar. dumping 900,000 shares make for a lower pps,nothing being approved soon.
That 100 mill. will go to the lenders as a penalty for breach of the loan.If you want to invest in oil buy Maserk or rig,forget Hero it's a pos,only management made money in this company
Since rigs are being sold for ten cents on the dollar,the company is worth 10% of book value which is about $4-$5,look for the pps to drop to this level until things turn around,maybe in 2017.
Debt 430 million- cash 296 mill= 134 mill debt,but they get back the 200 mill for the highlander which leaves them 66 mill in the green minus the 30 million loss for the quarter plus whatever penalties incured still leaves them in the green plus whatever the newer 2 rigs and the Saudi rigs are worth plus the lifeboats gets divided by the 20 million shares.Am I missing something,I think they are worth more bankrupt now than blowing 30 mill a quarter in the next few quarters,there are no contracts out there with too many rigs idle. On the other hand even if they get the Maesrk contract they are cutting looses,but still loosing money,without new contracts thier finished,they will continue to bleed.The balance sheets of all the other drillers are just as bad,if they don't sign new contracts thier debt will bring them to thier knees.The best thing to do is wait on the sidelines.
That was different,they had 1.2 billion in debt.,now that the debt. was written off thier assets can be sold and in this enviroment any contract is golden so the Maersk contract has value
The bondholders are looking for a buyout or merger,but even giving the company away for ten cents on the dollar no one is biting,the offshore oil is heading towards the shale oil,Chap. 11,they want to hurt the money behind the companies,Obama hates big oil,wants money only in green companies.Even the Saudi's are looking to sell thier oil company
It forced all shale companies to restructure which means shareholders and bondholders took a beat down,but production although curtailed can be turned back fairly quickly once prices go up.Drillers are now in the same boat,even though oil is going up there is no new contract's being written,heck there lucky to get the old one's extended even at reduced levels.That is why bondholders are reluctant to give hero another 200 mill.,hero has not signed a new contract in over 9 months,even with the Maersk contract,which will be reduced by at least 20%,they will continue to loose money.This is why a company with a book value of $26 is trading under $2.The only drillers out there that can survive are the one's not loosing money,mergers,restructuring and bankrupcy is what's left.All the Saudi's did was to wipe out the money behind US oil companies and the new jobs it created ,with the help of the Obama administration,notice that we now know that it was the Saudi's that were behind 911,but Obama silent on the issue.The American gov. can only be destroyed from within,and that is what is happening.The best that can happen for Hero is a merger with seadrill or noble with stock only,maybe 3 for 1.
I think if the deal fell thru,hero stock pps would be worth more on a merger or liquidation than if they continue doing buisness.
Not true,you loose if company goes bankrupt and thats where Melo is taking it,if it was worth anything one of thier partners would take them over at this level but none are stepping up to the plate.That is why it's trading as junk.