That they waited until an oil Bear Market to put the non-core properties up for sale. That is just really poorly played. What were they waiting for last year? $200 bbl?
EIA report bullish with inventory declining 5.5 million barrels. But everyone says we will necessarily build again as refineries shut down for fall maintenance. I sense a little underlying strength in the sector today.
Props Verado, but I wish you would have made your case without coming across like a shorty with an agenda. Most likely you couldn't have revealed exactly HOW you knew, but in that case you should know no one could go by your conclusions.
In any event, you appear to have made a lot of money with your knowledge.
The problem with that strategy is that it will be nearly impossible to time getting back in. BBEP could go to zero, but it could go to 10 as well. 5/1 risk/reward ratio right there - a good bet for anyone who could stand the CHANCE of going to zero.
Tomorrow will be interesting.
HI VP, I will be taking another look after i rates rise in September (I think). I would not raise rates if I were the Fed but this is the situation I see.
Too true, and the Saudis can rally the market, and all oil companies anytime they want to cut. Not hard to be a Saudi prince investor, put on your positions, and light a fire under them at all. So illegal for US citizens.
I would force management to cut if I were on the board. If anything only a penny per month. It's survival mode. Time for payment is later, when WTI recovers.
There is no real place (yet) for these USA old line companies which can have their sakes reduced but increase earnings. It's not how it's done. GE is the king of this, but it always tries to pull in at least some revenue growth. Eventually investors may embrace increase productivity as a profit grower without sales growth but it is not this day.
Not really. The MLPs can be explained by looking at the price of oil, but not just the shortest term contract. They all have hedge books that will expire and leave them at a loss UNLESS oil improves by the time their hedges run out. So when oil dropped to 43 in January it was not as important as being back down to 50 in July.
There is also alot of investors throwing in the towel all at once.