Obama haters just love to drag him into everything. Obama has nothing to do with the gross incompetence and mismanagement of Linn Energy. Can't wait for Hillary to get elected, what a field day the Hillary haters will have with that.
Linn's grab for the cash ($900 million on credit facility) almost certainly guarantees a BK when credit redetermination season comes around in the spring. That's why they grabbed the cash now, to cover expenses associated with BK and pay out bonuses to Executives on their way out the door. Linn's assets are worth a lot less than their value on the books making Linn worth less than its outstanding debt. Equity holders will get nothing, Debt holders will get a percentage of what they hold. Maybe $0.30 on the dollar.
I knew some idiot would come out and blame Obama for this. Don't you think Mark Ellis might have some responsibility ?
A man jumps off a building. As he passes the 5th floor on his way down he could be heard commenting, "So far, so good".
Problem is that nobody would want Linn's assets, or not for anywhere near true value. Remember when housing collapsed in 2009, banks foreclosed on houses but didn't sell them. They waited years before unloading these houses. Without debt payments, Linn is profitable to run. When oil prices recover, so will the value of what Linn owns. Debt holders are better off waiting it out.
Linn will file Chapter 11, which will allow it to continue operating while negotiating with their creditors. Bond holders will probably get something like $0.30 on the dollar, equity holders will get $0.00. The bondholders will then be running the company. Sometime in the future the bondholders will go public with this company, issue new stock and try to recoup their loss. Similar to what happened with General Motors in 2009.
He doesn't have to show his face. Who do you think live behind those gates in "Gated Communities" ?
What makes you think RDS management will have a choice ? Those decisions are made by their creditors/bond holders. They are worst than the #$%$'s.
For anyone still owning LINE or LNCO shares, there is a posture you need to adopt. From a standing position, bend over and grab your ankles, LINE management is about ready to "service" you. The $900 million they just grabbed off their credit line should just about cover the bonus' for executives at Linn Energy as they exit the premises.
COP reaffirmed its dividend 2 weeks before they cut it. RDS is no different. They will continually reaffirm their dividend, right up to when they cut it. No company can lose money and pay $18 billion a year in dividends for very long..
Who cares. Iowa is not an indicator of how the nation will vote. Its a state of conservative, evangelical, ethanol sucking farmers. Less than 4% of Iowa voters attend caucus. The whole thing is a joke.
Yes, I still believe nobody cares. Only the media and Hillary haters. Everyone else knows that this is just pure raw politics. Republicans vs Democrats, no holds barred. Funny how these email "revelations" come out on scheduled basis. Wonder who is responsible for their release ? Disgruntled former Clinton Staffer still at the State Dept perhaps ??
"which are all dropping 5-9% which will bring supply/demand into balance." . . . . wrong ! Production is not dropping 5-9%, its flat to slightly increasing, and that doesn't include Iran's oil yet or Iraq's planned increase. Stored crude supply is reaching a point of total capacity. Within a few weeks there will be nowhere to store crude as all storage will have maxed out. Again, I'll ask, Do you just make this stuff us ?
Coal plants will die sooner than later. Sen Mitch McConnell from Kentucky is the only thing keeping them alive and Mitch is in his 80's. I'm hoping that export of LNG will have the effect of equalizing prices worldwide similar the WTI/Brent price for oil trading within pennies of each other. LNG export from the US will only get larger and will increase the price of NG. But all this will take time, how long is anyone's guess.