banks and insurance companies are on the other side of the hedges not to mention all of the money that they have also loaned to them. As warren would say...the tide is about to roll out and we will see who is standing naked. rails are going to get smacked also.
they are just journalist making a head line. if they had any brains they might get an analyst job at some third rate bank. if they really knew what they were doing they would be working for or running a hedge fund and making some good money.
the government has never needed a reason not to. This issue isn't even on the radar yet but it's going to be.
Having been through this a couple of times. Here are a couple of things to think about.
1. current break even prices in the oil patch are based on boom prices. rig rates and services will drop like a rock changing the break even point.
2. natural gas has a good chance of increasing in price because much of the gas produced today is a by product of shale oil production
3. companies that are well hedged can probably last longer than dictators facing an increasingly cold and hungry populace because their budgets have cratered due to low oil prices. In short, a few months down the road they are going to be having different opinions on production cuts. GTLA
No one will take Linn over but I bet there are going to be some great fire sales on producing properties that they will be looking at and at very accretive prices.
just a move to shake wall street down for campaign contributions. watch, when they shell out enough the hearing will end with a whimper. read. Extortion: How Politicians Extract Your Money, Buy Votes, and Line Their Own Pockets
Saudi's and goldman suchs probably have all of the cheap oil stocks that they want so now the price of oil will go back up
and that's why I sold my position after the g20 conference. might get back in at some point but not until there is some transparency
selling the hedges isn't the same as taking the billion out of his personal account. he's betting on the upside. hope he doesn't wind up like aubrey mcclendon when he took his downside protection off nat gas
I think you are right. Sooner or later they are going to have to simplify their structure just like kmp to get lower capital costs and distribution growth.