nice call wouldnt have minded doing that myself... but hopefully long is strong to a buck in the next 3 months.
a buyout would be tremendous for recent buyers awful for true longs in the 2.5-4 buck range... or worse 5-6... most the buyers I know are under a buck players, if you look at WRES management they are doing a great job operationally and there is upside, with some luck this dog could turn into a flyer... and fast...but that will take some support from the overall commodities, especially gas... which is in a bear market right now... furthermore the overall market and selloff of companies like CHK can't be helping much.
at any rate the delisting is a concern for the stock and we shall see how management addresses this.
you mean the traders here for the spec that the company will implement some aggressive strategy to avoid delisting.. part of that will be market based recovery... if that happens and any other significant news... a buyout quite obviously would be optimal. There are several companies that could buy WRES but they are on the smaller side, however the operational growth over the past few years has been impeccable... and with the recent sale it shows some great liquidity into the marketplace.
its a rough day for the overall market and it seems even though oil prices have stabilized that the stocks aren't garnering interest... the snapback can come fast when prices recover... but for now it just seems to be in the dog house.
holding out for the payday in the market is like watching paint dry sometimes...
I invite all the WRES investors to discuss the de-listing and the fundamentals of the company..
Fundamentals seem secure as of right now... for the foreseeable future - solid assets, and lots of upside potential.
Downside is the de-listing losing interest in the stock, etc..
maybe, maybe not... crude and NG are trending higher into the summer... so if that is the case you are most certainly wrong
debtors should be taken to the cleaners along with management... this company should be broken apart to piece by piece and given back to the equity holders.
this is a true garbage situation... where equity holders were completely ignored.. they owe equity holder the minimum difference between now and the share tank.
this is atrocious and horrendous.
This is a complete debacle of greed and destruction of value. Equity holders were misrepresented here
this is unnecessarily harsh towards all the equity owners... and unless this pops, which it won't because of the negative perception of management now... this is really devastating to anyone who has bought and stuck it out.
Now, the real root question, was the CH. 11 restructuring really necessary? Debt holders always get first dibs at the value.. but it seems like HERO really got pushed into a corner.. and was sitting in a highly devalued and out of favor market... GoM market with offshore jackups, underutilized... etc...
But was a buyout completely off the table? I mean what the hell is this nonsense... the management completely destroyed the equity holders... and there is some actual cash flow here still... and there was a potential market for divesting and breaking apart the company.
hello to you to market... wake up. SOmeone will put in a bid for this the stronger the balance sheet is shored up.. this is a perfect pick up for someone like OXY or EXXON looking to acquire some smaller strategics.
looks like the provable in northeast is solid, but also has huge upside potential.
main risks are de-listing and equity issuance, other than that the risks are materially low considering hedges... lots of upside when NG and CL recovers
couple quick notes,
more conservative capex, earnings should be a little lighter, but I don't expect it to be horrible considering a lot of the 2015-2016 is drilled out pretty extensively
aggressive reduction to G&A... looks nice, 3.5M reduction is pretty significant for WRES, equity issuance potential is a 50/50 but with the asset sales preceding I don't see this as necessary yet.
reducing net debt by 47M
Sentiment: Strong Buy