Linn has stated that they are 100% hedged in NG for 2016 and 2017 and 70% hedged in oil for 2016.
Otherwise Linn wouldn't need to reorganize.
If the hedges were functioning correctly Linn would have positive cash flow in 2016.
In a hedge there is a party on the other side that has agreed to buy oil for $90 or $4 NG. The other party is now in the red for a couple of billion $. Suppose the other party is a foreign bank , utility or oil refiner and they have defaulted. Remember they fired the CFO about 6 months ago. Maybe the hedges were just phony entries on the books.
The oil price drop is coming to a head within the next few months before the Linn hedges expire. But the outcome is unsure. Will OPEC + Russia agree on quotas that all the players hold to or will everyone keep producing and we have low oil prices for the next few years ?
The market cap of all of ECYT is only $139 million , That's pocket change to a company like Merck or Lilly.
If any big company realizes that 1456 is going to be a good drug ECYT will be bought out.
There is no way that a company with 57 employees ( some doing lab work) needs 26,000 sq. ft.
Is it possible that 26K is the minimum amount that WTC would lease out. PGNX might keep only 3-5 K and sub lease the rest to other small companies ?
Tie up with a Chinese company and send some of the surplus rigs to China to drill for shale gas. China needs to replace their coal fired energy and they have lots of shale rock to drill i.
This company does have some good properties. Maybe a large international oil company will try to buy CHK on the cheap say $9.00 share. There will not be enough shares available to cover the short position.
Pull the trigger at some point when they are sure the heart drug is good enough to get FDA approval. Remember, Amgen paid 10 billion for ONYX whose products were for a much smaller number of patients.
Wait until the kidney drug gets approved. One of these days the shorts will figure out that the stock is headed up not down. Maybe a buyout from Roche will do the trick.