"I would like to improve your credit facility but can you explain to me why 80% of your rigs are labeled oil yet you produce 90% gas"?
Yes, I can answer that--They are trying to produce oil.
Ahhh--that makes a lot of sense
Business philosophy of EXCO's competition--
"We're achieving great returns on our oil and NGL but we keep getting tons of gas out of this drilling. What should we do with the gas?"
Sell it for whatever you can
Bipolar meaning I was drinking the Ross, Marks Watsa kool aid BUT after Harb deal, chk deal, Ross taking 1st debt position and Ares selling a portion--I puked the kool aid and the stock.
If it falls under $5 going into year end look out below
Get ready for devastating
Ross will get all he wants in BK which is 1-2 years out
If it falls under $5 before end of year that's where it's going. Long term sub $4 gas is the culprit.
I'm out, wounds licked and sewn!
Maybe I sold at the bottom but
When Ross took over as the bank he mentally wrote off his equity positions and now has a new angle and its not equity appreciation.
Cutting the dividend is next.
Ps-when they start exporting gas the price will not go up like most think----they will just get more supply
Ross took out the bank revolver
This allowed greater flexibility in doing chk deal and put them in ford
Then he swapped the haynesville deal for Tggt
He now sits in 1st revolver position. He's in oily Ford plus a big haynesville export spot.
He destroyed the equity position doing it but sometimes you have to do that to get from 1st base to home.
If gas stays low equity holders will get wiped out but he'll own the co.
Good luck longs
Harb is seasoned
Chk is seasoned enough
Tggt sale is done
3 major pieces all in the rear view mirror.
Time to tell us rev/eps guidance 2014
Time To address subash $3 target in same sentence
Time to tell us how much money going to bottom line.
Repeat. Bottom line guidance.
It's time to shine
No insider buying.
Pps at $6.67 going into earnings
None of it is good-----retesting $6.50 tomorrow