they may have to dramatically cut back capex until oil recovers. but if you go to their website and you go to investor relations and then presentations and see the march 2015 presentation recently released, you will see on page 20, they have a $1,895 billion credit facility left. hamm has confirmed this in an interview as well as stating large cutbacks in capex may be needed.
but to compare to radio shack, is not worthy, as radio shack had nothing to offer. wll comes with debt, but the oil potential that is down there for the next 30 years or more has profit potential many times more than the debt amount. you get the debt now, but 30 to 50 years worth of oil to develop. like buying money in the bank for the future, but not desperate to need the price of oil to rise soon as wll does not have the ability to handle all the debt. for a big company like exxon, that will be around for the next 100 years, wll could be a great long term deal at the right price. i have no idea exactly which companies are seriously looking at wll, but there is something you get for your money, a lot of future oil. a buyer of radio shack, would have only got a bunch of electronic junk, not years of oil to develop.
when they first set in motion buying kog, oil had not tanked yet, so that contingency was not planned for well. at this point, they may believe it is in the best interest of shareholders to sell it and their debt could be a problem. for a company like exxon, their debt would not be a problem and they would look at the long term advantages of owning wll, which is they are sitting on huge amounts of oil that can be developed for decades to come. long term the price of oil should rise and the price of extracting it should become much more efficient over time as technology for doing it will improve over the years. for a big company like exxon or others, the attractiveness would be all the oil that is down there. short term, it might look unattractive, but for a company with a long term vision over decades, they would be getting a lot of future oil as the amounts recoverable will grow over time. and it is a lot of oil down there. the potential profits over the next 30 years from the oil can be attractive for a big company that could easily swallow that debt and get the company at a bargain price.
they have the interest expense but if you see their 2014 year end presentation on their website, you will see that the first debt repayment is not due until 2020 for $200 million and then the bigger one of $2 billion is not due until 2022. they have no big debt principal payments in the near future. it is only 2015, also, at some point oil will rise in price, big companies all over the world and the smaller ones are all cutting back projects that will be needed for future growth. eventually, the supply will come down and prices will rise. maybe one year, maybe three, but it will happen. he has been in the oil business 50 years and has been through many downturns in the last 50 years, i am sure he knows the reality of the situation and will insure the survival of the company. but people act like they owe $7 billion next month which is totally out of touch with the reality of the situation.
clr will have an extra $600 billion in debt incurred in the 1st quarter. this is bs. they do not have any big amount of debt to cancel until 2020, $200 million. in 2022, $2 bilion.
they have interest payments but no debt to cancel until 2020 for $200 million and then $2 billion in 2022. that is the earliest. it is in their 2015 presentation on their website. this is total bs, your post. also, hamm has no interest to sell clr and is in fine shape to weather this oil downturn. read the presentation on their website and the latest interview from hamm in the news headlines.
and they might shop it to a foreign company. who knows. hopefully, an american company buys it if it sells. we do not need the end result of the oil crash to be that the bakken oil fields and all that future potential for the u.s. to become foreign owned. real stupid. good thing hamm owns 68% and is a patriot.
i just hope that if the company gets bought it gets bought by an american company like exxon or someone. there is a lot of oil in the bakken and it will become more efficient over time to extract and will provide decades of production growth and give america energy independence or more independence over the long run. it will be a pity if a bunch of bakken companies and all that future oil over the next few decades and our heading towards energy independence becomes owned by a bunch of foreign countries. big mistake to let that happen.
he must have been talking short term. an article just came out a day ago or so where he stands by his previous forecast of higher prices within a year and a half and has been on a buying spree. search article - t. boone pickens predicts oil rebound, buys 12 energy stocks.
a lot on the basis that in the long run global demand will grow for the next forty years and the price of oil is predicted to rise back up within 24 months and they are sitting on huge amounts of oil in the bakken. they are one of the biggest land owners and their reserves keep growing with more advanced technology over the years and decades, more oil will become recoverable at a more efficient price. it is estimated that the bakken will take at least 40 years to develop and continental for the long term investor has decades of growth ahead. as well, as they have a big land position in the scoop play with just yesterday a new article coming out about the scoop play in general saying this area has decades worth of oil reserves to develop. long term continental is sitting on huge amounts of oil that will be needed in the future.
they actually have a lot of sales. non-existent is total bs. valuation worthless, they have a lot of land and there is a lot of oil under there. a lot of oil.
no, he is right. who knows the exact time frame but world demand will grow and the supply glut will get eased off. couple that with the fact that almost all the big oil companies, medium ones, and small ones are halting projects. overtime, this could actually lead to a big supply shortage in the next few years or sooner as these projects will take time to ramp back up and either way, long term, oil will rise back up. it could go down first, and stay for awhile, but many long term investors that have patience know there is a lot of long term value in many energy stocks today. clr will have a rough time but they will survive and for the future, they are sitting on a lot, a huge amount of oil in the land they own, future technology will make more of the oil recoverable and more efficient to recover. their reserves will grow for decades.
there are so many projects and supply cuts going down worldwide by almost all the big and medium companies, as well as the small ones, and these will take awhile to set in over the next year and awhile when needed to be restarted, that the reverse effect outlined by the first post in this thread of future supply shortages as well as the demand estimates for asia over the rest of the decade will most likely create the reverse effect and spike the oil price someday. when it starts this uptrend, traders and speculators will all buy in for the ride up and could cause an even more extreme spike in the price of oil.
its like the worse it gets, the more cutting, and over time as demand grows, and supply and production growth cuts set in, the more it sets up for supply shortages, increased demand, and a rising oil price some year again. many analysts have said this, the more drastic the oil crash, the more drastic the future shortages or oil price increase could be in the future. not to mention the pressure from many other opec members and it is almost impossible that oil could remain this low permanently or for more than 3 years. but it could go lower in the meantime. really hard to predict, their seems to be an analyst supporting every scenario.
i do not know how the market would read this in the short term. overall, it does not seem like it would change much unless they foresee some kind of political struggle in saudi arabia but the saudis probably have had a solid succession plan considering he was 90. other than that, unless it is seen to effect their opec policy which it probably will not, probably not much long term effect.