It would help to find out if a short term liquidity issue is in the cards. We still don't know the results of the credit facility re-determination. It was originally scheduled to be established around April 1.
The company's borrowing base had been $1.8 billion. Since they have $1.2 billion drawn, a haircut below that level will create quite a problem. The fact that the negotiations were extended from April 1 to May 1 indicates that there might be some gnashing of teeth.
Not too worried about Zacks, it's a computer generated model, that doesn't consider the industry. ESTE is safe at the current share level.
It's price will increase if oil goes up some more, or if they make a deal for a distressed property at good prices, I don't think ESTE is on the market to be bought, yet.
We may be going through a reversal in E & P companies that is as intense as was the stock market bottom in March 2009. The whole sector is moving. If it continues for a few months, you will also discover the day of low gas prices has ended.
IMO it was a huge relief, especially the comment about liquidity where they do not expect the next credit redetermination to take them under the $1.2 billion they have drawn. Gives them another six months to wait this oil thing out..
It appears there is a seller. 28,000 shares being offered at 80 cents, and who knows how many more they want to unload.
__ IMO is their is not much left in the way of physical assets to make this a viable investment going forward__
1) The low level of debt and dramatically cut overhead gives the company staying power, something many E & P companies do not have.
2) While the Bakken assets might be a known entity, IMO there is lots of untapped and unrecognized potential in the Booth Tortuga Lease.
3) The company is in great position to participate in a reverse merger.
They're betting the whole company on the future of Nexus, yet there've been few specifics regarding what' s been accomplished or where it is going.
It's a regressive tax on consumption aimed at the poor and middle class, but concealed as a tax on oil companies.
$74million cash gets reduced to a market cap of $49 million, because investors feel this business model is worth less than nothing.......$25 million less than nothing.
How's that for creating some shareholder value!