they try to write a shocking article, but its just counter cyclical investing. they buy when everyone is selling & sell when everyone is buying. generally works like a charm, especially if its mostly equity and little/no debt service to worry about. cherry pick/buy low and wait for the market to come to you. liquidity providers. those amounts are a drop in the bucket compared to the hundreds of billions in global capex cuts across all those industry segments. same reason you buy a motorcycle in october and sell one in april... just my 2c.
buy the debt, then cut a deal. right the ship and ride wave back to par. saw the '19s hit the $30's. I bet Saudi makes room for Iran, not that 500k is a lot of oil relative to the almost 100mm daily global burn. those guys want oil low for a ltitle bit to reset the demand curve, but they dont want it low for so long that their reserves get smoked and social pressures leak in. brazil & mexico are hating this!
It's a slow motion learning curve now. Still contend that these assets, and many other E&P midgets, are better off collectively in bigger hands. It makes absolutely no sense for all these smallish players to be trial and error learning & re-learning the things EOG, PXD, COP, CLR, HES, MRO, DVN, OXY, etc. have already figured out. Just a waste of $ and otherwise productive assets.
.....We think this is a step in the right direction as it provides the Company with more than enough liquidity to get through 2015, and should improve PVA’s margins. We maintain our Focus Stock rating and $9 price target.