but if they can have the convertible debt converted into shares at .60 vs. the original $8 then they get 90% ownership in the company for a song....earlier this year the board elected to allow them to convert 20million into shares at around $2, a 75% discount to the original deal, even though the debt was being carried at only 2% interest......because they are on the board they same to get special treatment, so they in the end may benefit but the shareholders may not....i'm on the sidelines watching now, wondering how things will shape up and if the company after the reverse split will give White Deer another freebee
They sold non core that had little upside p2, p3 reserves, the price won't reflect the value of their core assets such as the Permian basin.
You should check in on Tues on the website for their new presentation that they will give at 10:30 am in NYC , I imagine it will provide greater clarity.
I agree, form an MLP, drop down Aneth, do a exchange of shale assets for mature producing with established production
considering we are holding up in a 300pt decline in the dow, says a lot. I'd love to see management sell the whole company to LINE or BBEP or MEMP for the Aneth oil asset then the acquirer could sell off the other assets at a pretty penny....the break up value of REN 1.6 1.8 billion, net of debt about $10 a share
Sentiment: Strong Buy
I agree, factoring in all the news and liquidity outlook, hedged, oil mix, etc, I doubled my position this week, adding here with 300% upside over 18 months, limited downside barring oil collapsing...
it doesn't make sense to take out a 2% debt only to replace it with a higher interest credit line
Will the price of the convertible debt be adjusted in a reverse split? currently 150million convertible at approx $8 a share, will that be adjusted to 160$ a share? Anyone know, if so fine no big deal, but if they cook a deal then the debt becomes extremely dilutive. If management had ouor interest they would leace debt in place at 2% interest it's almost free, but the owner of the debt sits on the board....any thoughts/
I think now that the liquidity and solvency question is off the table we will trade much like the other oil weighted E&Ps, 2-3 x ebidta or %60 of book....about 3.50-4.50$
It bears mentioning that even at an oil price of $55 per barrel, Aneth Field generates positive free cash flow with a cash margin $11.60 per barrel net of LOE and taxes and CO2 costs. Aneth Field was a giant resource with an estimated 1.5 billion barrels of oil originally in place and it is expected to produce oil for decades
1.88 is the next resistance, once through its open to a entrancement up to the 6-7$ range...technically... I think we will get to 3.50-4.50$ in the next year, about a 50% discount to nav and 2-3 x ebitda then 2-3 years out to a normalized 5-6 x ebitda = $9-11and $80 oil price
Sentiment: Strong Buy
Thank you for pointing out there is a filing. What disturbs me is that they are planning a 1-20 reversal split and then I imagine recap with a secondary....that in mind I'm out I'll wait and see....disappointing but cost me very little to exit here.
Management should of cut their salaries
Good luck all.
2016 curve improving into the $60-65 range, our break even is in the mid $50 so 2016 is looking positive....considering we have strong liquidity we could see them raising cap ex in mid 2015 hitting high end of guidance. at a 70$ price for oil in 2016 EOX target of 2-3$ in 12 months
and the company started drilling 2 years ago so your point is what? Bakken wells generally payout out in 2-3 years, and beside you are being a little dramatic and untrue....don't get excited when forecast is 4500boe a day for 2015, any out performance is notable and can move the needle on forecast and importantly cashflow generation.