On paper I don't think LGCY can survive at current commodity prices unless it is able to continue to cut costs. I beleive a lot of its revenue in the last 9 months has come from hedges placed quite a while ago a relatively high prices. If you look at LGCY just operating without hedge income, which will run out relatively soon, I don't think you have a viable company and perhaps an explanation for the bond pricing. GLTA
I think a lot of the profound selling pressure we're seeing in all the oil and gas companies is year end tax selling. These stocks are all down big time so what better stocks to dump to get big tax losses to offset against your gains, if you have any. I think once we get through this year end period, things might perk up a bit. Regarless of the price of oil or gas.GLTA
LGCY came out today that it's borrowing base had been reduced to $900,000 for a Revolver of $1.5 billion. How can you have a $1.5 billion Revolver with a borrowing base of only $900,000. I can only assume that while the Revolver was $1.5 billion when originally negotiated, to keep referring to it as such with a borrowing base of only $900,000 seems a bit of hype. Nornally you can only borrow a percentage of your borrowing base. GLTA
You know, I look at these message boards in the hope of some glimmer of knowlege about the stock I'm looking at. I know Yahoo message boards are not where you generally find sound investment advice. Still, every now and then, you pick up an important insight. What's frustrating is how politics seem to have invaded all these message boards. "It's all Obama's fault" is a common retort. Then the posters talk about Putin and whether he is out-smarting Obama. In my view, the pricing actions of SA have a lot more to do about the world price of oil than anything Obama does. Putin perhaps has challanged this with his recent Syrian moves and his proclaimed vow to discuss the world price of oil with OPEC. Maybe SA will sit down with Putin and make Russia part of the price fixing arrangement of OPEC. I think the gradual lift in the world price of oil suggests that something like that may be going on. Still, to bring U.S. politics into this move by two big oil producers seems absurd. Obama doesn't set world oil prices and the U.S. shale oil industry seems pretty free of U.S. control. The shale industry just seems to becoming more efficient and profitable without any goveranment oversight. Just a thought. GLTA
I just listened to the IPAA Presentation by WLL. Unless someone is telling really big lies, it all sounded good even at $45 WTI prices. They're operating within cash flow and have nothing drawn down on their Borrowing Base of $3.5 billion. Not too many other oil companies can make those claims in today's enviroment. The current stock price rise suggests someone is catching on and at the moment, I'm a happy shareholder. GLTA
Market Edge, the Schwab technical service, just raised their rating from Neutral to Long. This is simply a technical opinion so maybe there was a reverse head and shoulder pattern. GLTA
Well, I hadn't thought about the technical indicators, espeially head and shoulder formations. I do know that OAS has shown tremendous price support for the last several days. Why? Who knows? Still it's there and the tape is showing it. GLTA
I don't think so. The stock has been holdng above $14 pretty well. It could crash. It's a trading stock after all. You judt have to hang on and let the shorters do what they might. Simply enough holding power. GLTA
WLL should get through October without a problem. At a recent presentation the CEO says WLL is currently operating on cash flow from operations and has no money drawn against its $3.5 Revolver. It's senior debt doesn't become due for years. He also said the current plan is to operate in 2016 on available cash flow from operations. No great growth possibilities but it looks like the company should be fine financially.
I'd be interested in how you know this. I just completed a great profit in selling the OAS August 11 calls. Back in with a sale of 40 September 11 calls at $.75. This is great income unless you're correct and I'm going to lose all my option profit from a collapse of the underlying equity. How do you know this is going to happen? GLTA
I got a message that at 3:45 p.m. the NYSE was reporting an order imbalance in OAS of 66,000+ shares on the buy side. This may have no significance at all, but I've looked and can't see why in the world this got posted as an "Order Imbalance". Appreciate any helpful info. GLTA
Now that LNCO is apparently going to suspend its dividend, does anyone have a suggestion for a high yield investment for an IRA. I understand you cannot carry a limited partnership interest in an IRA without negative tax implications. This would mean that most oil MLP's are not appropriate nor the REITS. Thanks.
You know you have a point. If you could get a long term private investor (or company) to give you the cash on reasonable terms (probably with an equity conversion feature like the Warren Buffet loans) they could use the money to keep buying in their debt at $.60 on the dollar It sure beats a Chapter 11 where the equity is usually completely wiped out. The $9.3 billion debt currently becomes a little over $5 billion. Make that adjustment to the balance sheet and you're looking at a very solid company depending on the terms of the new cash.. There's always the chance management is making matters seem worse than they are to buy in the outstanding debt cheap. I note they did not immediately suspend the distribution but simply said their "intent" was to recommend to the Board that the $1.25 annual distribution be suspended at the end of the third quarter.They gave themselves lots of wiggle room with that statement although its market effect was devasting but that may be the plan. A lot can happen between now and then and that "intent" may never become a reality. With this crew you never know for sure but they're announcing things that they know will put a depressed price on their debt and units. Great time for someone to buy in the debt, take an equity position, and get all the assets free of debt than you can control counting on the equity position to bring you out with a handsome profit. Just a thought. GLTA
Does anyone know what Raymond James is saying now? They came out with a Strong Buy about a month ago then reduced it to Outperform pointing to many favorable catalyts they saw in the future. I wonder if this is one the favorable omens they were anticipating? GLTA
While I don't think Mitt personally would want to send our young men and wormen into the disaster in the Mid East, his neo-con supporters would have insisted on it. They don't go themselves to die, They send the young mem and women. Mitt Romney would have been a pawn of the same group that started the ill-fated war in Iraq with no plan to exit. I think we've had anenough of this foolishness. GLTA
Any chance it might be straight forward and based on solid operating performance. You suggest only two negative outcomes.Zachs is predicting a pretty good report given what's happening in the energy sector. GLTA
Well, there we go. $.35 distributio for the quarter, right on time and in the promised amount. So much for Jiggernitwick and all his useless comments. Hang in there. This is a good MLP run by management that has a lot of skin in the game.