Sanchez Energy Corporation Commences Exchange Offer For Senior Notes Due 2023
"The New Notes will have terms that are identical in all material respects to the terms of the Old Notes, except that the New Notes will be registered under the Act and will not have any of the transfer restrictions, registration rights or additional interest relating to the Old Notes. Sanchez Energy will not receive any proceeds for the exchange offer. "
it's a 13G/A, meaning they already had a position (13G), but it has since changed. Not a "new" position, but they added to it. Search the SEC filings page for 13G or 13G/A to see all the filings. They are bigger than Soros, in aggregate, funds, etf's, other accounts.... We'll see if any more new filings show up.
by then it would be too late ;) OAS has ranged from $58 to $10.7 in about 6 months - in my book, that's already a meltdown. Cycles are as old as time ~ zig when others zag, and enjoy the ride.
That post doesn't make sense. To my knowledge, they did not do a capital raise or secondary offering, delivering dilution and additional capital to OAS. SPO et al., looks to have bought public equity. They may do so in the future, but doesn't look like it in this case. I would expect they are going to look to other levers as well, like co-investments by PE, similar to what blackstone is doing, selling non core assets that would garner a decent valuation, restructuring some debt & extending maturities where possible, cutting costs with service providers, dropping some assets into MLPs, hi-grading portfolio - pushing only better well design & highest IRR completion zones, cutting G&A, more direct marketing to end users to get spot + pricing, and ...maybe selling out entirely... lots of levers to consider. Shakeouts happen, this is one of them.
just interesting to see bottom fishing. They run probably over $8bb, so not a massive position notionally, but I like the interest in the sector, and to also get a glimpse of where these hitters are starting to deploy new capital.
sec filing yesterday - 13D amendment. JHS:
"....Individually, and because of his position as a control person of SPO Advisory Corp., JHS may, pursuant to Rule 13d-3 of the Act, be deemed to be the beneficial owner of 10,111,000 Shares in the aggregate, which constitutes approximately 10.0% of the outstanding Shares."
One observation: since the last low tick in 2009 ~ $40ish, North Dakota has increased production about 1mm bbls/day. Canada oil sands crude & bitumen has grown about the same amount, a bit more I believe, but for ease, lets say 1mm bbls/day increase as well. So you have 2mm new bbls a day from 2 areas that trade at about say $15 discount to WTI currently, give or take. WTI at $48, bakken & western canada select/sour at roughhly what, about $33. So all this "new production" that is pretty much what the amount of surplus in the market is, depending on your source, is trading $6-8 below the last low tick on the long term oil chart? I find that interesting.
Just look at Civeo to get a sense of worker demand at these oil prices. Circle the wagons time, and reset the production vs price cycle... all this has happened before. I expect these prices, if they hold for a few more months, will materially reset the world production growth line graph. All this talk about Iraq ramping up is a sideline story, and really more to do with inside OPEC politics of market share, relative to the natural decline rates the world sees every year, and how lower oil prices will disincentivize the investment needed to replace that. At the same time, ocean drillers are scrapping rigs as fast as they can light the blow torch. Interesting new world in the last 6 months. The IMF is right - they should be concerned with future investment in oil production falling off.
What prices are they getting in Canada spot now? $32-33? Bakken, $35-36? Crazy. Bet Harold wishes he kept those hedges... and the Mrs'z.
"Civeo said the occupancy rate for rooms contracted in Canada has plunged to 35 percent to 40 percent in 2015 from more than 75 percent this year. In Australia, the rate has also dropped to 35 percent to 40 percent from more than 55 percent at the start of the year." Bloomberg News.
I'm very interested to see the demand for these new oil partnerships being touted in Mexico, after the gov't just raided Pemex's bank account to help the gov't budget. Red flag to me. The more things change, the more they stay the same.
i still contend that someone larger should wrap up both SN & PVA, and cut the fat. With the new zones, downspacing, etc you are probably looking at about 300+ MMBOE 1P, and prob 2-3x that in 3P, if memory serves. $4bb would prob do it my guess, roughly PVA at 15, SN at 20, or about $13 per boe 1P. Do it stat & get the hedges, and use cash/equity to wipeout debt service drag...
"your" is a possessive pronoun, as in: Do they have schools on "your" island?
"you're" is a contraction of the 2 words, you & are, as in: "You're an idiot."
Happy New Year :)
look what luxor, fir tree and some insiders just did today at ECR. the oil and gas patch game plan playing out. equity dilution playing out. Im sure some of these big guys are buying the distressed bonds, and looking at follow on equity infusions in companies where they can get good leverage and clean up the balance sheet, collect a sweet coupon, or even a preferred div, while waiting for commodity prices to normalize. good to be the kings.
very very rough pencil on napkin, with that sort of decline curve (eyeball -10%pa) I'd guess you're looking at anywhere from $275mm-325mm in gross revenue over a 10yr run at about $3 n gas, not NPV'd. What was the cost of that 30k' well?