Venezuela started OPEC..... They are the idiots who out priced their oil with the Middle East to make America shale industry strong. They cut their throats and now are rioting, starving and dying. Social unrest is their future as our technology is laughing at them .
Summary- most was acquisition cost and infrastructure building. HEDGING and DIVY bringing in cash flow as they buy debt back 35% cheaper. Billions coming in from hedging and a billion in debt leaving from DIVY reduced. A billion post can not make you smarter.
Insiders are buying oil like crazy and the BIG fish buy the small. What is that telling YOU Shorts –Bears done ***********Insiders are buying oil , for the first time shorts are covering with volume. Carl ICON- purchased shares of Chesapeake Energy (NYSE: CHK ) Buffet’s Berkshire Hathaway Inc. (BRK.A) Reveals $4.48 Billion Stake In Phillips 66 **** It is too late for OPEC to stop the shale revolution. THEY blew it and America is fighting bacl!!!!!!!!!!!!! Insiders were buying at about 40 energy companies by my count. ** Insiders are buying when everyone else is so negative. They know. Including equipment and services insiders purchased $49 million worth of stock in the eight trading days through Aug. 10.
The short answer is that at its current price, WTI is just slightly above its six-year low of $43.46, reached on March 17. *Barons gave some strong positive points –, multi-year lows, high dividends, not over valued, true value as the dow has topped-Nasdaq nose bleed areas. Kind of surprise has been norm in the sector. Most companies in the sector surprised to the upside of guidance. People expected the worse. The sector has the highest potential for growth next year in PPS and oil. At the 6 1/2 year lows people are looking the fundamentals, Technicals and sectors viability to reward investors. The historic value may not mean any thing if the sector dies. && The demand must be there at a reasonable cost. In a nut shell I think we have been over pessimistic as usually as we over correct both directions. It comes down to risk assessment frequently used by analyst. We are in a cloud knowing the history and value of the past but not clear of the future
Kind of surprise has been norm in the sector. Most companies in the sector surprised to the upside of guidance. People expected the worse. The sector has the highest potential for growth next year in PPS and oil. At the 6 1/2 year lows people are looking the fundamentals, Technicals and sectors viability to reward investors. The historic value may not mean any thing if the sector dies. The demand must be there at a reasonable cost. In a nut shell I think we have been over pessimistic as usually as we over correct both directions. It comes down to risk assessment frequently used by analyst. We are in a cloud knowing the history and value of the past but not clear of the future as production and availability have changed, the evolution. This is one sector that is not over bought as the market in whole. The bottom of these cycle are very hard to see . The upside sometimes equally elusive. OIL/GAS will always be needed as tied to energy needs in general and power for whole communities/ country's.
SUMMORY. USING cash flow to acquire long lived assets and to pay down old assets on the cheap. ( cheap ) meaning assets were routed by 50% from the oil boom leaving huge debt for little. The company is reducing debt 35% cheaper to level the balance sheet. The Hedges, liquidity, growth and debt reduction is there.
Recently, the company bought back $599 million in bonds for just $392 million in cash, which is a 35% discount to par value. That brings its bond buyback up to $783 million year to date. Additional debt repurchases could be on the way as the dividend suspension will increase the company's retained cash flow by $450 million on an annualized basis, which it can then plow back into additional debt repurchases. Security ----- Hedged additional oil volumes; oil now hedged ~90% for the remainder of 2015 and ~70% in 2016 Natural gas hedged ~100% through 2017
Now what: From a practical standpoint suspending the distribution makes a lot of sense because LINN can use the cash to buy back more bonds at a discount. That being said, the company has completely lost the respect of investors DEBT reduction – Cash flow from hedges and No DIVY ###b Grew Q2 2015 average daily production ~1.5% compared to Q1 2015 Decreased Q2 2015 lease operating expenses by ~18% compared to Q1 2015 *** Excess of net cash after total oil and natural gas capital development costs of ~$71 million for Q2 2015, exceeding guidance by ~$90 million ### Increased FY 2015 production guidance ~4% and decreased LOE guidance by ~6% Liquidity- Completed borrowing base redetermination in May Undrawn capacity of ~$1.5 billion (as of June 30, 2015)(1) Estimated Fall 2015 undrawn capacity of ~$1 billion( GROWTH_ Finalized the strategic drilling alliance with GSO Capital Partners LP , Agreed to initially commit up to $500 million with 5-year availability . Finalized the strategic acquisition alliance with Quantum Energy Partners (drilling alliance) , coupled with a 1$ Billion acquisition with Quantum. Agreed to initially commit up to $1 billion of equity capital- The company has grown with Grown through 62 transactions for ~$17 billion Large, long-life diversified reserve base (( the beef)
Total proved reserves ~7.3 Tcfe % proved developed ~80% % liquids ~42% Reserve life-index ~17 years Gross productive wells(2) ~28,000
The Company currently holds approximately 10,000 net acres in the Ruston area and approximately 20,000 net acres in the Calhoun area, both located in north Louisiana. LINN recently completed a vertical test well in the Ruston field encountering multiple Bossier intervals confirming a continuation of the Terryville field trend onto LINN's acreage position. In addition to proving the prospectively of the Bossier intervals, a deeper Smackover interval was encountered and the Company is currently producing from that interval at initial production rates of approximately 4 MMcfe/d. LINN plans to drill its first operated horizontal Bossier well during the third quarter 2015. In the fourth quarter 2015, the Company plans to drill a vertical test well in the Calhoun area to evaluate the prospectivity of the Bossier and Cotton Valley intervals
•Operationally, break-even is likely in the $40/barrel range. Your using all of the cost including acquisition to every thing under the sun. •Because of the hedges, Linn will have decent cash flow under a wide range of oil and natural gas prices for the next two years-with a remarkable 50% of its market cap available in distributable cash flow, at current depressed share prices.
• Debt reduction- divy,,, the dividend isn't sustainable unless oil prices bounce back to the $70 range.
•It appears that Linn could survive with oil prices in the $40 range, if they were able to deal with debt. Of course, at that price level, there will be debt problems, but it's good to have some idea of the potential of the company as an operating unit.
MPO was up 150% at one time Friday... I DIDN'T sell. I feel there is more profits to come. 200% I might have sold. It dropped to close up 100%. Many of my oil stocks were up 20%. The market loved oil again Friday. Lets hope we continue to get more of our money back.
During the second quarter we further increased our 2015 oil hedge position. We have not added any new gas hedges. For the balance of 2015 we now have about 85% of our projected oil production hedged at roughly $72.00 per barrel, and about 60% of our natural gas production hedged at $4.13 per MMbtu.
Sentiment: Strong Buy
Must be a little in the margins. Reserves priced at 140 a barrel VS. 40$. Boom to bust they say. the big question people want answered - will it return to a normal 65 to 70? I am betting , yes.
TULSA, Okla.--(BUSINESS WIRE)--Aug. 4, 2015-- Midstates Petroleum Company, Inc. (“Midstates” or the “Company”) (NYSE: MPO) today announced its financial and operating results for the three months ended June 30, 2015.
Second Quarter and Other Highlights:
• Achieved Adjusted EBITDA of $99 million before debt restructuring costs for the second quarter of 2015.
• Reported Adjusted EBITDA that outpaced operational capital by $29 million for the second quarter of 2015 and by $37 million for first six months of 2015.
• Increased average production in the Mississippian Lime to a record high of 27,029 barrels of oil equivalent (Boe) per day in the second quarter, up 31% from 20,698 Boe per day in the second quarter of 2014 and up 2% from 26,531 Boe per day in the first quarter of 2015.
• Attained total Company production of 33,893 Boe per day in the second quarter, up 6% from 31,912 Boe per day in the second quarter of 2014 and essentially flat with 34,164 Boe per day in the first quarter of 2015.
• Maintained estimated well level returns of greater than 30% in the Mississippian Lime, using July 27, 2015 strip pricing and current AFE of $3.3 million.
• Reduced adjusted cash operating expenses to $11.75 per Boe, down 14% from $13.63 per Boe in the second quarter of 2014 and down 8% from $12.82 per Boe in the first quarter of 2015.
• Closed the sale of remaining Louisiana producing properties in the Dequincy area on April 21 for approximately $42 million in net cash proceeds.
• Executed a $625 million Second Lien note offering and approximately $525 million Third Lien note exchange that significantly boosted liquidity and captured debt reduction opportunity.
• Reported liquidity on June 30, 2015 of $402 million comprised of $151 million in cash and $251 million of availability on its revolving credit facility.
• Increased full year 2015 production guidance to 31,500 to 33,500 Boe per day.
Reported Adjusted Net Income totaled a loss of $3.9 million, or $0.58 loss per common share, in the second quarter of 2015. During the second quarter we further increased our 2015 oil hedge position. We have not added any new gas hedges. For the balance of 2015 we now have about 85% of our projected oil production hedged at roughly $72.00 per barrel, and about 60% of our natural gas production hedged at $4.13 per MMbtu. As of June 30 we had $151 million in cash and $251 million available in our credit facility, for total liquidity of $402 million. A review of he liquidity enhancing transactions that we undertook in April and May. On April 21 we did close the sale of our remaining producing properties in Louisiana and realized net cash proceeds of roughly $42 million. On May 21 we sold $625 million of 10% second lien notes due 2020, and used a portion of the proceeds to repay the outstanding balance of our credit facility of roughly $468 million, with the remainder held for general corporate purposes. In conjunction with these transactions, we also entered into an amendment to our credit facility to provide additional covenant flexibility and ultimately reduced our borrowing base to roughly $252 million. These transactions substantially increased our liquidity and provide us with a significant runway to manage the Company through an extended period of low commodity prices. Completed transition to a Mid‐Continent focused organization from an onshore Louisiana concentrated start‐up
•Premier position in the Mississippian Lime and a substantial, multi‐zone inventory of horizontal well locations in the Anadarko Basin
•191,700 net acres in the Mid‐Continent region, with minimal acreage expirations during the remainder of 2015(4)
•Over 2,800 total drilling locations in inventory ^^^^^^^^^^ Mississippian Lime(1) •Premier position in high‐return core •27,029 Boed net production(2) •139 MMBoe proved reserves (58% liquids) •80,700 net acres •~1,500 potential locations •300 to 350 MMBoe net resource potential ***** Anadarko Basin •Multi‐zone inventory yielding strong Hz results •6,586 Boed net production(2) •12 MMBoe proved reserves (67% liquids)(3) •111,000 net acres •~1,300 potential locations •140 to 240 MMBoe net resource potential &&&& Fleetwood •Future value from exploration prospects to be initially funded by JV partner •Reported Adjusted EBITDA(1)outpaced operational CAPEX by $37 million in first half of 2015 –Adjusted EBITDA(1)outpaced operational CAPEX by $29 million in Q2 2015
•Reached year‐end Miss Lime well cost goal of $3.3mm(2) –Anticipate further reductions as we move throughout the remainder of the year
•Attained total Company production of 33,893 Boe/d in Q2’15 –Record Miss Lime production of 27,029 Boe/d, up 2% from 26,531 Boe/d in Q1’15
•Closed the sale of the DeQuincyproperties in Louisiana for $42mm(3)on April 21, 2015
•Executed a $625 million Second Lien note offering and approximately $525 million Third Lien note exchange
•Reported Liquidity at June 30, 2015 of $402mm
•Increased Full Year Production Guidance to 31,500 –33,500 Boe/d
I own LNCO. also. Every body in the world steered me away from LINN. NO DIVY, NO FUTURE and no street respect.....Im glad I went with my gut last week and bought back in. these are very cheap and just the appreciation of the PPS will be enough. I am setting very good today and made up about 25% of my losses in a day there. CRK was a winner for me last week as to the reason I started buying oil back. I have had several MONSTER days from different oil stocks. These great days have offset the losses from the field as a whole. BY design , manipulation or my own suborn nature I feel we are near the bottom to hold for a couple years to make a very good return.
people are stupid period. WHY was it down in 2008 Why did it come back?.... Why does fear cripple people and then make them crave for more stock. The greed flows both ways on the street. The chance of missing a real to life 10 banger will haunt many who sold. Is hope for the worlds economies dead or is it oil now flows like water? We over buy and over sale stocks. Shorts and hedge funds make you believe through bough and paid for articles oil is done for years.? Can you get it cheaper? Probably not. That's why I bought a few..... I had a whole lot more a month ago and took the loss. The fear of not having any controlled a small buy lately.
Look at most the sector. MPO was up 150% at on time I had three stocks up almost 25%. This stock still has plenty of life left. We have only just begun to move again. The shorts in the sector have to be on edge right now seeing a 250% move. It can happen to any number of these bargains