Meanwhile Fidelity has recently raised Axas's neutral rating from 6 to 7 within neutral category.
strange price held constant/trading action the last 2 hours on low volume. Any opinions?
BY Investars Analyst Actions - public
— 1:06 PM ET 02/01/2016
On February 1, 2016 Thomson Reuters/Verus downgraded ABRAXAS PETROLEUM CORPORATION (AXAS) from HOLD to SELL
World prices are determined by supply and demand as we all know. I wonder how much demand there will be for US light, don't fool your self with wishful thinking. It will help Baaken prices. So we get a $4 plus or minus bump, but The Trend is still down(way too much oil in storage).
I the scheme of things, think u got a great price around 95 cents. The rest of us are sitting on our hands. Hope I get an invitation to your celebration party in 2 years.
good advise ,only no one is immune in the hydrocarbon environment.
Looking at Kinder Morgan again, its cash flow math for next year looks too finely balanced for this environment. Analysts forecast Ebitda of $7.93 billion, according to numbers compiled by Bloomberg. Andrew DeVries at CreditSights estimates interest and preferred stock obligations swallow $2.4 billion and maintenance capital expenditure takes another $600 million.
That leaves $4.93 billion, most of which is earmarked already for dividends. Despite Kinder Morgan having reduced guidance recently, the mid-point would still mean dividends taking $4.81 billion of it, leaving less than $120 million to spare -- fine, but not exactly huge in today's climate. Holding the dividend flat would boost that cushion to about $470 million.
Relatively the Permian(W Tx) is now The PLACE---note the cos active there are holding up better- great history going ' back to the past'. Instead of fracking 8500' laterals in low perm shaley silts, they are doing the same in more conventional lime and sand sand reservoirs with proven long term production from vertical wells.
Too bad AXAS fans, including myself.
Any analysts worth his salt will not venture projections at this time as NO one really has a handle on the timing of a bone a fide increase of demand for crude. I feel some shock(disruption) coming out of no where that will temporarily drive up prices is fairly likely. In the meantime the industry will probably be sloppy for 6-9 or more months.