Chris, You literally just made my point without saying it.....TIME. GDP doesn't have the ability (liquidity) to last a "couple years" with oil where its currently at. Yes someday oil will be higher than it is today, but when is the question. And When looks farther than a year away which puts GDP in a very poor position.
You're missing my point golong4201.....My point is they are doing this because of how bad of shape they are in. They are doing everything they can to hang on and survive, but what happens when they run out of assets to sell? Money to borrow? investors to invest? Its called cash flow bud, and they don't have any in the future unless oil shoots back up
did it ever cross your mind why they are selling those assets? Perhaps because they won't have enough liquidity without it. They can't sell the tms, because no one wants it especially with oil prices where they are, so they were forced to sell their best asset. All GDP is doing is prolonging the inevitable......bankruptcy. (unless oil magically skyrockets, and fast)
Just because someone funds someone a billion dollars does not make them right...Do you think people don't ever lose money on billion dollar investments? Look at the companies cash flow...its over for them. All they can do now is buy (literallly BUY) time. The problem is that eventually people won't keep funding a billion dollars to them because you can only throw money into a loser for so long and then you begin to see that there is no hope. Unless Sandridge can continue getting hedged oil in the 80 dollar range, they are pretty much screwed and their liquidity will shrivel up. There is nothing special about Sandridge, it was an instrument for Tom Ward to siphon money and now the instrument is falling apart because the new leaders are trying to use this instrument as somethings its not.
I could care less, people need to grow some ballz. I say it how it is and I don't sugarcoat it. This company is done unless oil shoots back up to 90 a barrel and quickly. The end is near for this company.
Lolz at the thumbs down, youre probably the same people who thumbed me down for the last few years as I've said how poor SD is. Notice how the stock has done nothing but go down? Wake up and smell the debt and poor assets boys and girls. That mixed with a poor oil price creates the beginning of the end.
Sandridge has a billion more debt than Hk now and on top of that has no diversity in its assets. The miss lime requires a lot of infrastructure which they now have, however, it still has very mixed results.
Sandridge won't have the liquidity to survive that long tho... They are in worse shape than Halcon and not much better than GDP
GDP is also a much smaller company than Sandridge willussaw, so I don't see your point. The company is not big enough to service the debt, unless oil goes back up within the next year or two.
GDP's debt to equity is far worse than HK and SD. On top of that, Halcon's debt was just raised out of default, I believe SD's debt is still ranked in default (not sure though). Halcon claims to have enough liquidity for the next few years, however you never know how valid a statement like that is.
With Sandridge though, correct me if i'm wrong, but they have no hedges and have banked their future on the very expensive to drill Miss Lime. Yes they have put in a lot of infrastructure, but they still have just as much debt as Halcon and their oil to gas mix is not very consistent and is very gassy. Halcon on the other hand is in two great fields and hedged quite well this year and moderatley well next year. Yes they have a lot of debt, and yes their will be dilution, but they also have floyd wilson at the realm who needs no introduction. I don't disagree that GDP is much more likely to go bk or be bought out for dimes on the dollar than it is to stay in business... Just speculation here, but I could see Halcon trying to buy GDP eventually if things get bad enough so that they control the whole tms pretty much and get all their drilling information to help reduce costs etc.
Jim, whats your thought on companies like Halcon and Sandridge? I think Sandridge is in serious trouble and Halcon isn't far behind, but I think Halcon is the best out of the three, which GDP being the worst probably. Just curious your thoughts since you actually know what you are talking about with GDP in my opinion.
No, you should have never listened to CNBC or wall street. Think about it, CNBC and that stupid asian chick especially were continually beating up on apple when it fell a couple years ago and saying "are they done?" etc. Its a bunch of nonsense to get viewers. I bought the stock around 60, before carl icahn and now look.....
The only person you should listen to is yourself. And thats after you have done proper research etc. Don't buy long shots, you don't need them to get rich. All you have to do is average about 8% a year and over the long run, you'll make more money than you know what to do with