Yahoo can't even run its own company properly. Why would anyone consider their opinion on energy matters to be worth the time of day?
If Yahoo is to be believed, slightly over 50% of the common is owned by insiders. That creates a very strong incentive to stay out of bankruptcy. On the other had, any company with the same financial condition and near term prospects of CJES is assuredly a good bankruptcy candidate.
Another consideration is that CJES holds primarily physical assets that are almost impossible to liquidate in the current environment. So a fire sale in bankruptcy would salvage fairly little for creditors and may not be nearly as good as keeping the company in operation. A prepack in which creditors take most of the company as compensation for pain and suffering is very likely.
Both the common and the preferred shares are being cancelled. If the judge decided to push for a recovery by any stockholders, it would, at best, benefit the preferred only.
Creation of new orders for over water rigs is the key question. After this painful pullback in oil prices, how risk averse will E&P companies be? What will it take to provide adequate assurance that their investment will be recovered? I'm guessing that over water drilling will be the last to recover.
I believe that the future of this company rests on its ability to renegotiate some credit arrangements. A claim of default due to a low EBITDA was delayed until May 31, 2016, to enable negotiations. We should know more in the next week.
Insiders have such a large percentage of the outstanding stock that there's a big incentive to find an arrangement other than BK.
The conversion kits have been around for a long time. One problem is where does one put the high pressure tanks? If you're converting a truck, it's pretty obvious. But it you're converting a Mustang?
The energy density of natural gas at the same pressure as propane is 65% less per cubic foot. So it takes much more pressure, or much larger tanks.
The Greeks called the same fractions the Golden Ratio. Fibonacci discovered something that had been known for over 1000 years.
I'm thinking of inventing the telephone.
Without early termination, leases would have continued, perhaps producing revenue in excess of the termination fees.
Any additional increase in oil prices will halt any further decline in over water drilling activity, and an increase is just around the corner. Due to the dramatic drop in exploration and production investments that low oil price brings about, such is the most important driver behind future price increases. Oil prices historically begin to recover in about two years, with full recovery in about three years. We're right on schedule.
I have to strenuously disagree with one of your assertions. The market is, in fact, terribly stupid. The market price of a stock is seldom correct given the long term effects of forces that are known to exist.
Reduced investment in oil production will eventually result in an oil shortage, driving crude prices skyward. A relatively safe, and quick way of pumping additional oil will be to drill more wells at an existing, offshore location. At that time, ORIG will begin to print money.
OPEC, which holds the great majority of know oil reserves, doesn't have the money to drill right now. Venezuela production was dropping when oil was $100; now their production is dropping even faster. Ditto for Nigeria. Due to corruption at high levels, Iraq is about to reject the current government, sending the country into chaos.
Sentiment: Strong Buy
Electric cars use energy also, most of which comes from burning fossil fuels. The rest comes from nuclear, hydroelectric, and a very small amount from wind and solar.
Now that Swift is putting the bankruptcy behind it, it is one of the best positioned shale companies in the world. I don't intend selling the new common or any warrants for a long, long time.