Saudis are NOT losing money. They just arn't making as much. Shale producers can only store limited amounts and that can be expensive when you are operating on a reduced budget. If your not around it doesn't matter how much you store cuz you wont be dumping it anywhere! Survival of these leveraged small cap O&G companies is their only priority at this time and some will not be successful.
Oil will go up with a vengeance. Production cuts happening before your eyes due to capex reductions. It will take a while to play out but the oil price will be back up to $100 or higher. Saudis are playin this thing like a vintage violin. I gotta hand it to them, their plan is being executed to perfection. I didn't think it was going to spread to the majors but it has. Enjoy the cheap gasoline prices this year because we will be back up closer to $4 in the future. I hope these small cap domestic O&G will be able to survive. Its a shame that oil prices are out of the control of the US. GLTA
That is being Unrealitic to ask Rynd to work for nothing. At a time like this is when he is working his arsss off to keep the company in business. His neck is out there and he is taking all the risk. This isn't JP Morgan and he isn't Jamie Dimon!!!
Hedges are not the best but they are staggered enough that if prices change they have the ability to adjust. I think management senses that O&G prices are a #$%$ shoot from here. I'm sure decent hedges are not that easy to come by at these levels. Beggars cant be choosers scenario.
Is EXACTLY what you wanted to hear from WRES in this environment. Management is actively doing what they need to survive.
Natural Gas Hedges
Gas Swap NYMEX $4.18 3,000 MMBtu/d 01/01/15 - 12/31/15
Gas Swap NYMEX $4.02 3,000 MMBtu/d 01/01/15 - 06/30/15
Gas Swap NYMEX $4.54 20,000 MMBtu/d 01/01/15 - 03/31/15
Gas Swap NYMEX $3.20 10,000 MMBtu/d 04/01/15 - 10/31/15
Gas Swap NYMEX $3.16 10,000 MMBtu/d 04/01/15 - 10/31/15
Oil Swap NYMEX $50.00 1,300 Bbl/d 02/01/15 - 09/30/15
Not the best but all profitable!
Quote from the CEO
Lance Peterson, Interim CEO. "The reduction in capital expenditures in conjunction with a strong asset base, where approximately half of Warren's reserves are in long-life waterflood and CBM assets, positions the Company well to ride out the current commodity price volatility and return to growth when conditions stabilize. Even with reduced drilling and completion activity in 2015, the two Upper Marcellus wells planned for this year offer the opportunity to prove-up the formation and add reserves organically."
Nope, this is what they do for entertainment when they cant fund an investment portfolio! They sit in the crowd and heckle the players. You gotta be in the game to win. You either run with the pack or sit out back with the puppies!
Decline is partially due to currency wars. Any country that devalues their currency and exports commodities will appeal far more than the same US commodities and strong dollar.
Rynd even said that he was hanging on to cash and credit lines in case investment opportunity arises. That's how he responded to analyst who asked "why no buyback"
M & A starting to heat up with SLB buying Russian Eurasia drilling and India's ONGC rumored to be in talks with CHK. Things going to get interesting in the oil fields! Less
It will probably get revised down from 80 mil unless we see 4$ ng but that's good. Cut costs and capex until the storm subsides. Marcellus is lower cost production and in the sweet spot for ng.
Credit downgrade had something to do with WRES today. It was expected and most shale drillers will suffer credit downgrades. No big deal most investors now expect them. M & A starting to heat up with SLB buying Russian Eurasia drilling and India's ONGC rumored to be in talks with CHK. Things going to get interesting in the oil fields!
Warren Resources, Inc. (Warren Resources) announced its preliminary capital budget and production guidance for full year 2015. The Company expects approximately $80 million of capital expenditures in 2015 with primary focus on developing its Marcellus shale assets. Also, Warren Resources expect 2015 production volumes to range between approximately 41 Bcfe (Billions of Cubic Feet Equivalents) to 43 Bcfe, a 95% increase over the midpoint of projected 2014 production, led by increased production volumes from the Marcellus assets.
I don't know why anyone with any investing experience reads or replies to any posters that have no facts or that keeps pushing forward the negatives or down right lies. If you own any stocks, you should know what are factual concerns and what are speculative or even lies. Stay focused ,patient ,vigilant and prudent. Weigh the negatives and the positives but make your own judgment. Those that let others persuade or alter their decisions should not be investing and will always sell at the wrong time. Never let a poster get under your skin. That's exactly why the post!
If its an accounting problem why would the Chief accounting officer buy 20000 shares @ 1.73 on Dec 5 2014?
I think it has more to do with shorts playing momentum to the downside on headlines like the last 8k filing. Doesn't help having long positions stopped out, panic selling and investors concerned of the unknown and debt that HK carries. To late to sell know if you have been long since 2014. IMO
Downgrading oil stocks that have lost 50%-70%? They are always trying to appear smart and have their own manipulative agenda. They are nothing more then a spokesperson setting up the little guy!
Spot on halibuthead. In the current storm, being hedged and cutting expenses early are signs of a seasoned captain. This aint Floyds first fishin trip.