If I'm not mistaken, they are hedged for 1,097,000 bbl oil for 4th qtr at $89.04/bbl. Same for 3Q which just ended. Their average price in 2Q was $89.12/bbl on 1,300,000 bbl oil. So, it seems for 3Q and 4Q they are covered for 80%+ of oil production. That leaves maybe 20% of 4Q production subject to whatever oil prices do. Assuming oil at $75, they would take a $3.75M hit on revenue.
Hedging for 2015 (last I saw) was 2,908,000 bbl (50%+ or so of production) at $89.42.
Wasn't aware of the refinery capacity situation. But, this steep fall in oil seems to be more about supply and demand. If true, does it matter that some refinery capacity is offline?
you gotta be nuts to buy more of this. Don't get me wrong, I hold shares but I wouldn't buy more with a ten foot pole. Not gonna throw good money after bad
Don't know, MPO is taking the worst beating of any EP's I'm aware of. Must be their debt.
Someone correct me if wrong (little out of my league here), but MPO does appear to be well hedged. If I'm reading, and understand, the 6/30/14 10Q correctly, it looks like they are "hedged in" at $89.04/bbl on oil for 2,194,000 bbl for the remainder of 2014. With 2Q production of 1,300 MBbl, this would seem to cover the lions share of their oil production for the remainder of the year. For 2015, hedged at $89.42/bbl for 2,908M BBl. Am I interpreting correctly?
Thanks Boss. Yea, I have no idea where the break even point is. Also, what about their hedging? How much can that save their butts?
What makes you think even 3 is safe. I mean, with the way oil prices are going it the solvency of MPO in jeopardy?
Any thoughts out there on today's announcement of the property sale? Been out of MPO for awhile, but just last week bought in again in the $4.80 range. Thx in advance.
Already pulled the trigger yesterday at $4.83. Agree though, a little nervous about the direction of oil prices. Also bought some NM (dry bulk shipper) this morning on new 52-wk low. Analysts, FWIW, seem to have high expectations for the next year. We'll see.
Given the relentless downward pressure on the PPS, I think we are observing an institutional holder (Camber?) dumping.
From the glass is half full perspective, once this thing moves to the pink sheets, the company will save money by not having to comply with all the listing requirements. So, we got that going for us, which is nice.
I'd take $2 right now and be happy. The FDA has an agenda that does not bode well for AMRN.
I don't know yose, you may be fighting the tape here. Fair amount of buying interest in the upper 1.80's.