I'm amazed we didn't see a sell -off after their "going -concern " statement in the earnings report.
originally posted by petruchi0 on the HK site:
BHI Rig Count: U.S. -22 to 932 rigs
U.S. Rig Count is down 22 rigs from last week to 932, with oil rigs down 31 to 703, gas rigs up 8 to 225, and miscellaneous rigs up 1 to 4.
U.S. Rig Count is down 929 rigs from last year at 1861, with oil rigs down 831, gas rigs down 98, and miscellaneous rigs unchanged at 4.
The U.S. Offshore rig count is 34, up 1 from last week, and down 20 rigs year over year.
BHI Rig Count: Canada -1 to 79 rigs
Canadian Rig Count is down 1 rig from last week to 79, with oil rigs down 4 to 16, and gas rigs up 3 to 63.
Canadian Rig Count is down 89 rigs from last year at 168, with oil rigs down 53, and gas rigs down 36.
Some time after they issued their operational update they addressed the fact that if commodity prices remained at current levels they would be facing a budget shortfall in meeting their interest expense. They mentioned exploring options to increase liquidity such as asset sales and a second lien offering. The proceeds of this sale coupled with the remaining draw on their credit line (if not already tapped) would seem to get them close, technically speaking. And perhaps if they continue to exceed production as they have over the last year they can manage a little breathing room. GLTA.
That's what caught my attention with WRES and MPO. The daily volumes are also similar. (BTW, I noticed TPLM has a short interest of around 23%. That might shake things up a bit...) GLTA.
As it was a year ago. Their greatest current liability appears to be dependence on natural gas as their core source of revenue, about 85% of current production. But they are nicely hedged well above current market pricing through most of this year. However, they began transitioning to greater oil production last August with their $300 million Marcellus acquisition and have successfully completed several wells in January. Once they bring this into production it should have a positive impact on revenues and profitability. The company's history gives every indication it is stable, proactive, and fiscally accountable. GLTA.
Warren Resources has posted consecutive earnings beats for a year now. Production for the full year 2014 grew 77% year-over-year. And despite revised 2015 guidance in response to ongoing volatility in commodity markets, they are still projecting a 52% increase over 2014.
This was issued a week ago on 4-2-15. But Noble Financial initiated coverage on 4-8-15 with a Buy rating and price target of 1.65.
March 25, 2015 -TULSA, Okla.--(BUSINESS WIRE)--...Midstates Petroleum Company LLC announced today that, as a result of its lenders' semiannual review, the borrowing base under its revolving credit facility has been reaffirmed at $525 million, with no reduction upon the anticipated closing in April of the Dequincy property sale. The Company also amended the leverage ratio covenant associated with the borrowing base to expand it to 4.5 times through December 31, 2015. The borrowing base is supported solely by the Company's Midcontinent assets and on December 31, 2014, the Company had $435 million drawn under this facility. GLTA.
Also, there is the opportunity for a six-month grace period to return to compliance with NYSE continued listing requirements. GLTA.
However, some economists argue the reaction to potential Iranian crude adding to global markets in the near term may be an over-exaggeration.
"Although Iran may have a sizeable inventory in floating storage ... ready to be released upon the lifting of oil sanctions, the reality is that it would still be a gradual and protracted return of its production to the global market in the next year or so as flows ramp up," said Schneider Electric commodity analyst Matt Smith.
“As prices dropped, there were quite a few smaller companies that many people thought would just fall over and die,” says Rice of Wood Mackenzie. “That has just not been the case.” Most drillers that need financing have been able to get it. The ability to slash costs is one reason lenders have doubled down on many companies.
The oil bust, meanwhile, is making U.S. drillers more competitive. Cutting costs by 30% lowers the break-even price for a driller by about $15 per barrel. Many drillers can now break even with prices for West Texas crude below $60 a barrel , and some can do so below $50. Those break-even points will continue to come down as long as prices remain low, keeping the pressure on.
The Saudis could probably produce even more oil, and push prices lower still. A few analysts think prices could go as low as $20 per barrel. But it seems more likely prices will stabilize for much of 2015 and gradually rise going into next year. Moody’s Analytics, for instance, predicts that crude will end 2015 around $75 per barrel, which would put most U.S. frackers back in the black. This oil bust might be just the thing to launch another boom.
As you mentioned yesterday, once the street digests the result, the pps will show it--especially if this is indeed the case.