Sanchez Energy Announces Significantly Expanded Availability Under Its Revolving Credit Facility
7:00a ET November 20, 2014
"We expect to fully fund our 2015 capital program through cash and cash equivalents on hand and cash flow from operations without drawing down on the Company's revolving credit facility, assuming average oil prices of $80 per barrel and natural gas prices of $3.75 per MMBtu."
(It's the secular $75 barrel and $3.50 gas we'll hopefully be able to hedge.)
6:03a ET November 20, 2014 (Benzinga) Print
Barclays downgrades Denbury Resources, Inc. (NYSE: DNR) from Overweight to Equal-weight and lowers the price target from $15.00 to $11.00.
Sometimes a fresh comp is just a fresh comp--Freud's spelling and composition teacher from the second grade.
I pulled the plug today and will watch and hope for the best for those of you who stay on. This feels like ATPG redux.
The buyback program has always been related to NAV, the forward strip and their hedge book. The buyback program has been suspended because the CEO is concerned about 2016 CL prices and their light hedging for 2016.
The webcast of analyst day today is a must listen for understanding why they are being so conservative with spending and guidance.
With nat gas up 7.5% today and cold to continue, I'm a buyer of PQ at $4.02 because it's ~70% of the production stream with high netbacks. Who cares what institutions did in the quarter ended Sept. 30?
I'd like to see MZ host a web showcase of their companies in early January where Watson and the other CEOs could talk for 30 minutes and answer questions from e-mail, twitter, etc.
Some analyst could just as likely say something positive on the RockPile value given the 40% premium HAL is paying for BHI. Thankfully, oil prices influence only one leg of this stool.
Make the filing Friday afternoon and say nothing would have been the worst case.
I'm not surprised there are some people throwing this back on a weak energy tape, but it appears the sub-$22.50 fear was misplaced.
I hope the presentation to the LD Micro conference Dec. 2 will shed some light on what's going on here. We need to know that they're viable at $70 oil.
It's a problem that the new IR policy means less information to investors. For example, they have discontinued the corporation presentation which used to be updated and posted almost bi-monthly. The funds flow metrics, which are critical to the investment decision, are no longer available to the public. Unless you are a client of one of the Canadian brokers who cover the stock, you're in the wilderness hearing wolves howl at night but not knowing what to do. Hardcider65 and others count on the dividend, I'm sure, but it may well be tenuous.
The market is not that inefficient. Christmas would come early with a 50% premium to the current $6.12 and every institution worried about the strip would take it.
I wouldn't have thought this would price under $22.50, but it's looking much weaker in order to get it placed. Institutions, as always, get the cherries.