Their loss is RIG's gain!
HOUSTON, Jan 12, 2015 (BUSINESS WIRE) -- CAMAC Energy Inc. (“CAMAC” or the “Company”) (nyse mkt:CAK) announced today it has terminated its contract with Northern Offshore International Drilling Company Ltd. (“Northern”) for the drillship Energy Searcher. The Company notified Northern on January 7, 2015 that it elected to terminate the contract with immediate effect for Northern’s repudiatory breach of contract and other material breaches of the drilling contract by Northern. These breaches have caused significant damages and loss, including delay damages and wasted spread costs to the Company. CAMAC is considering all legal options to enforce its rights under the contract.
The Company‘s Oyo Field drilling and completion operations are now being conducted by the Transocean RIG, -2.11% Sedco Express semi-submersible drilling rig, which arrived on location in December, and production is still expected to be online by the end of Q1 2015.
It doesn't make any sense when the stock is so low. So we get killed even more come Feb. when the stock drops .75 in a day because of the dividend. Stupid. Keep the stock at the same price and use the money to pay off your crazy debt. Carl Icahn moron didn't factor in oil at $47 when he pushed for that crazy dividend. That loser should pay the dividend out of his own pocket to every long in RIG.
So he forces this idiotic dividend on the shareholders when the company is swimming in debt?!? Only reason you would do something so crazy is if you think oil is going to stay over $80 forever. Obviously he got that call wrong and the shareholders paid a heavy price. Now he is on TV opening his mouth that oil will go down more..... Wow this guy is a genius!! He should be apologizing to every shareholder and offering to buy the company at the price he bought in the company at. They have net debt of 7.5B that could of only been 5B if he didn't pressure for the crazy dividend. Very irresponsible and greedy of him.
When oil was $10 a barrel RIG only had an enterprise value of 3.4 billion...... roughly a fourth of where it is now so it really wasn't trading higher..... at that time it only had 110 million shares in its float and had a net cash position of about $90 million. Of course they were making less money and had a shareholder value of only half a billion. Hard to compare the two at separate times that far out.
Having said that..... RIG is at a ridiculously low price here.
That RIG's balance sheet is stronger now then it was at the end of last year and the end of years 2012 and 2011. That is a fact. Only reason it is down this low is because of the PRESUMED damage to their balance sheet because of the lower oil price (Main Reason). How that plays out we will see in the coming months.
As to the dividend...... There are much better uses for that much money then paying their investors. Buyback the stock at this crazy price or pay down the debt overhang. This stock will go up if they reduce or eliminate the dividend for any of those two reasons.
During Feb of 1999 oil went to 8.60 cents a barrel (12.20 inflation adjusted). You think it can't go there? You are wrong.... I doubt it but it is a possibility. By my calculations if oil did hit that price then this stock would bottom around $9.50. No way this company will ever go BK in the near future. If oil goes to $12 RIG will still be around and still be making money. They need to get rid of their debt though that is why I wish they would cancel their dividend completely. They could eliminate their net debt in within 10 years if they did. If this company had 0 debt it would be priced well over 50 even now.
Why lie.... December 15th was the lows.... oil cracked into the $54 range. You are talking about a 9% decoupling..... big whoop. It will be a lot higher than that when oil really does find its bottom.
1. He lives in his mom's basement Mondays, Tuesdays, and every other weekend
2. He lives in his dad's basement Wednesdays, Thursdays, and every other weekend
3. His parents have joint custody of him even though he is 23 years old
4. He has a small package
5. His girlfriend rides in Johhny's Lambo sporting license plate OWNVDAT7
6. He could screw up the receiving end of a lap dance with a fistful of hundreds
7. He got fired on his day off from custodial work at the local high school
8. He lost all his burger flipping money shorting the markets since 2009
9.He gets no play like Gasman
10. Did I mention he had a small unit?
1. He is a fatazz
2. He has a small johnson
3. He lost all his money thinking he is a pro trader
4. His girlfriend is riding around in Johnny's Ferrari
5. Spends most of his time on the RIG message boards
6. He has too much gas
7. Gets rejected because of his bad stock picks
8. His attitude sucks
9. He is in love with himself
10. He lives in a van down by the river
Read the posts son..... sold from 4.93 at 5.10... rebought and lost a nickel. now just sold at 4.20. Up .26 on the day!!! Profit of 5K!