They are considering the SP cycle range over the past few months and the likelihood of a stall/dip of the major markets. Even a 5% S&P dip would send many small cap stocks down 10-20%+.
Mike-we all are waiting for news of Eagle Ford acreage acquisition(s) near by present operations mentioned as pending in last Ea cc. That is viewed as a strong positive.
Swooning crude price is a psychological negative, being in the middle of summer, and toppy market are possible reasons to preserve your 10%'er.
Your pick. But be nimble ..........
....over the long haul, I would keep an iron in the fire for this co is basing for a big step higher.
Agree with your crude support level, a likely event, though not definite. Oil co SP's are mirroring the S&P also. Look for consolidation in the 4.80 - 5.50 interval till fall.
Morning Headline---We are not sending many troops). to Iraq, the number will be kept small!
That is Vietnam's definition of escalation. (Sorry about the political message
A goat riding a flea bitten mule in the parade, looking to compete for best in show. Good luck, ya will need that and some more.
But Mike is Schiller and company able to perform??? Can't continue as they have done the past 3 years. Guess you are willing to bet on a dark horse with a dismal record, simply because it is has high odds.
buk---don't get gist of that post.
Adding a huge boat load of debt as you just mentioned is worry some overhead in many camps. Reserves are potential, not cash flow until additional monies are risked. That debt is like owing 300,000 RR's, all bot on time.
Better get active with excellent managing or EXXI will be ordering barrels to replace field hand uniforms.
Don't drive off the cliff in your Jeep, not all may be well, your eggs may start breaking, too many there. Dow up 1%, AXAS down 1%, simply this co is not being bot (except by you).
I have been there and done that.
Fun at first, excruciating agony later.
Cramer is seeing trends lining up
Crude likely will bottom in 90ish area soon; the Fall heating season is staring us in the face, Ngas is likely in an upswing and if the US military applies too much pressure on the ISIS, they may strike petroleum facilities(My POFWIIW).
Nothing surprising here, with lack of news and oil dropping until it's recovery Friday.
Fidelity Composite Rating of 7 Firms-
08/12/2014 , Downgrade ---Very Bullish (9.4) to Bullish (8.6)
Why would you expect differently? They paid way too much for aging Exxon fields, then were so enamored with that Deal, they got themselves promoted into that Vermillion? deal, paid for 2 wells for some healthy interest. Result is 2 troublesome expensive dry holes, earning a 50% interest in what? Their evaluation of exploratory prospects is about as poor as I have ever seen(and I made a career as an explorationist).
sp, they are simply taking cues from our illustrious leaders in DC that give themselves raises with some label, yearly.
Right on bellard, debt is there requiring service and with the huge overhead, whew. Interesting that Schiller is going to stay in the coop minding the hens more(paraphrasing). Will that cut back on the partying? His raspy voice and pudgy face tell it all. I could easily live off his bar budget.
heymee, great comments.
steelpokers , in your boat also. This is one co I have always been leery of. Got in back in the good ole SUD days. They are counting on perfection to come out of this any time reasonable I fear.
Point and Figure still has their 8 price target. If the general market swoons, well buys today may be regrettable. Striving for reality here.