The volume is most likely margin related selling. Most firms will not allow margin on sub $5 stocks so shares that were once collateral may no longer be margin eligible and those that were on margin may be forced sold into the market. For a company that has no bank debt and no maturities until 2021 on LT debt, SN appears highly manipulated and largely misunderstood. This company just raked in $350mm in non-dilutive, debt free cash.
So you sold near all time lows and took your loss thinking SN is going bankrupt? What is the catalyst for some near term BK? LOL…better you sold now Chinese. You will undoubtedly move on to fresh losses. Your personal bitter taste here is obvious as you seek refuge in posting negative comments in hopes of finding validation in your sell near the lows.
September 22, 2015
This week's edition of Oil and Gas Investor This Week pretty much sums up the yin-yang state of the oil and gas industry. One company has a strategy for when oil prices begin to improve, and another has filed for bankruptcy production. And, for at least the time being, lease-and-drill tendencies are trending downward. Acquire-and-exploit strategies are today's fashion.
In just four years Sanchez Energy Corp. has gone from 92,000 Eagle Ford acres and 10 wells generating 600 barrels of oil equivalent per day and $15 million in revenue to a quarter-million acres, 53,000 barrels of oil equivalent and $600 million in revenue. The company says it has a plan to position itself for renewed growth when the business climate improves.
EnCap partner Murphy Markham says private equity sponsors are turning back to acquire-and-exploit, as opposed to lease-and-drill. "I believe the acquire-and-exploit strategies are where the opportunities are going to be, and we're seeing a lot more opportunities on that front despite the market being rather quiet because of the low commodity price," he stated.
Once riding high, Samson Resources Corp. now finds itself with $4.9 billion in liabilities and nearly a billion dollars in debt due in 2016. The company ultimately succumbed to separate downturns, first in natural gas prices in 2012 and then in crude oil values in the second half of 2014. After a cumulative net loss of $1.9 billion in the past 12 months, Samson filed for bankruptcy reorganization Sept. 16. It is the largest E&P to do so amid the downturn in oil prices.