With nat gas under $3, have they ever simply said what oil needs to be per barrel for Stone just to tread water and break even while waiting for prices to go back up?
The stock is being punished as if SGY will go BK. But OBVIOUSLY they are far from that. They just are not making a profit for now. But the market cap of the stock price is ridiculous. Stone could sell itself for much more per share than what it is trading at!
I think the stock as been pounded for more than enough already. Let's hope for some calming words in the conference call and a return to more rational behavior in the ticker.
SGY has great management for sure. And they are doing good things to mitigate this tough time with the Saudis trying to whack USA oil companies. They have reduced costs and sold some assets.
At prices in the low double-digits, SGY is very tempting again. I just have not gotten rid of the fear that oil can very well go lower again, and if it does how long could it stay there. In that scenario, does SGY start to have trouble (how soon) making their debt payments?
Now would be a great time for big fish to buyout SGY.