Market cap 4.27 million. That is less than half the cost of one eagleford well. The company is priced at virtually nothing at this point. Really does not speak well for any chance of survival. But it is worth multiples from here if Moly mine resolved and company does survive to higher energy prices.
It won't lower share count or reduce the cost to pay current dividend. The general partner will just hold more of the shares and collect more of the dividend dollars. Too bad CEQP isn't sitting on cash so they could buy in shares at this price and retire them.
USEG does not have enough money to get rid of the Moly headache. An annuity to cover the cost of water treatment in perpetuity would cost a fortune. There is no one who will take on that obligation. TC did temporarily take it on, but walked away from tens of millions of invested dollars to shed that obligation. In retrospect the day TC walked was the right day to bail on USEG.
There probably was a day when USEG could have traded the Moly Mine to City of Crested Butte and State of Colorado for nothing. But now the City sees the horrible position USEG is in and seemingly would rather kill the company than compromise. Wonder where the obligation to run a water treatment plant would line up with other obligations if USEG was forced into BK.