SD just made $160mil. Also doesn't have to pay $9.6mil in dividends any more.
Pref. holders got hosed.
held by ISIS.
Why is oil this cheap?
I wonder how long will it take for Saudi Arabian oil fields to come under attack from radical Islamist terrorists.
This is why the safest energy source is US shale oil and prices will trend up after a brief dip that we are seeing now.
World is using 93mil barrels a day. That is a lot of oil. Current reserves for the entire world are only 60+ days.
Pretty scary scenario if Mid East and Western Africa production is shut down completely.
Debt is cheap, so very unlikely. Someone that bought this cheap (big fund) will support the company and the stock will rebound .
I know some stocks that traded at $0.50 - $2 that went up to $30 - $60 range after 2009 lows.
LNG for one traded at $2, now at $60. BEE was at $0.40 and it went to $14 (RE very indebted co.).
They can scare you about BK, but it is just a noise. Buy, put away and look back in 5 years.
SD will rebound, than oil, than SD goes up even more.
They can do that and buy call spread on the stock for $400 mil worth of equity. It would only cost $40mil to do that.
Oil will break $60 guaranteed.
This will happen in the next month and a half. All you need is a break of $60 on oil and the prices will quickly go down to $55.
With this big of a drop and SN only hedging 45% of the next year's production it will spell disaster for the stock.
Cash levels will be sufficient for the expansion of production (at assumed $80). With oil averaging $60 for next year they'll need more cash. Only way is either more debt or secondary. So wait to be diluted.
This is why everyone is dumping.
I'll even click it couple of more times and stop when the gasoline starts overflowing on the side of the tank.
With FED fully levered, he'll mess them up too.
Brilliant plan Obama.
Burgers killed him not the cop.
My point is that this wouldn't matter to someone looking to acquire the company since they would ultimately decide what the assets as a part of the transaction.
Purchase accounting would allocate new fair market value to each asset, so the statement of waiting for the write-downs by previous management doesn't make sense.
They should pump oil and not sell, but store it for later.