Flavio.......Thanks much for that info. Looks like a lot of potential for shut-ins and cuts in CAPEX for 2015. Of course, that's what is needed to eventually turn things around.
Kel..........an SFY holder
Med......You might be right. As the oil price crashes, the profit margins disappear very quickly. Natgas may be our savior here.
My God Terry..............what the ^*%# were you thinking? Almost no hedges in place with $1 billion+ of debt. Faruqi & Faruqi should be suing you personally for gross incompetence, not the company. The company is an inanimate entity. You Terry, and the BOD are an industry joke.
Kel................a VERY concerned holder
Was looking at the SDRL board. It got slammed another 8% in European trading. Interesting board. Off shore drillers probably the worst place to be right now. Or....a Bakken producer that's not hedged.
WTI is down over $4.00 on the Bloomberg futures. OPEC won't cut production. Now in a game of chicken with US shale / frackers. OPEC might win short term if US producers cut CAPEX for '15 and shut in marginally profitable production. No use producing at breakeven cash flow.
Offshore drillers target high cost of production work. Not the place to be.
Kel..........holding SFY, LNCO, and MEMP.....not SDRL.
Yeah, they went crazy building up the reserve base with borrowed $$. Now they have nothing left to develop those reserves. Joint ventures and buyouts will dry up until the industry stabilizes. CAPEX cuts for 2015 will be rampant. All the drillers like SDRL, RIG, RDC, and others will really have to hunker down.
Thank God for our hedges. Terry is outside trimming them right now. Oops, wrong kind of hedges.
Was just at Bloomberg looking at the futures.......WTI down $4.95....now @ $68.74..............very ugly......Natgas OK, about 8 cents down. Maybe hard to believe but the DJIA futures are up a little. Many oil / ng producers in the DOW and S&P 500.
Yeah, cheap gasoline is nice, but this will put the energy industry flat on it's back. Find companies that are mostly natgas like SWN and CHK (probably many others). Avoid the Bakken players as they are largely oil. Find those that are well hedged like LNCO and MEMP.
Friday's 1/2 day of trading could be very ugly.
Prices about 35 minutes old.....January contracts that are now the front month
WTI.......@ $72.54....down $1.15
Natags...@$4.29......down 7 cents
Venezuela and Ecuador leading the effort to cut production by 2+ million barrels per day. Saudi Arabia resists and wants to keep pumping at current rates.
My thoughts************US producers may lose this game of chicken. We may start seeing cuts in '15 CAPEX budgets. Could also see some wells shut in that are not profitable or only slightly so at sub $75 levels. Enough of that and the tide will turn. Natags looks like it'll be OK.
Don't understand Saudi Arabia's logic. Sell more for a lower price? Deplete reserves at lower prices? I know they have very low costs per BBL. There you just poke a hole in the ground and oil flows.
Wonder what the brilliant Terry will do.
Kel..............a concerned holder
Hard to believe that someone would go through all the trouble of establishing an identity to post that drivel. Maybe it's Terry and the BOD goofing around......of course they have nothing better to do once they lock in some oil hedges at $60. Have a good TG med.
J-man...........what's with FSFR declaring the next div (x-div on March 31) before it even goes X-div for the more current div on 12-11? Very unusual if not a little weird. Not holding FSC or FSFR.
Mine is in my IRA, so not that opportunity. But, if it was in a reg acct and I need to balance out some realized gains...........RGDX might be right for that. Sellers could dump it now and buy it back at the end of December. Just taking a chance on missing out on any good news in the next 31 days.