How much longer sub-$45.00 can even the strong players survive?
How much longer sub-$45.00 can even the strong players survive?
I’ve long thought the Chapter 11 process was far too forgiving for Debtors. A number of these companies (especially the early filers) will set themselves up to struggle for an additional three or four years. And maybe, in that time, they’ll get lucky with some pricing relief.
Biggest problem, for Oklahoma, is that the asset base is complete dog ****. Only formation that might be reasonably scalable is the Woodford and even that likely needs much higher pricing levels to attract investment.
Devon announced a large cut to G&A (layoffs), and Gulfport issued a going concern warning in their latest quarterly filing.
I’m going out on a limb, and speculate that the Oklahoman writer took the copy from “pr news wire” or whatever feed was placed in their inbox, pretty much copied it, and didn’t do any follow up. I googled “Gulfport going concern” this morning and found where the warning was floated out at, or near, the end of the earnings call. This appears to me to be the type of activity that Pete mentions on a regular basis when he is taking the Oklahoman to task.
The Oklahoman did not portray that accurately (shocking, I know). Gulfport's quarterly filing says their access to capital markets is impaired and their revolving credit facility matures December 2021 and they may not be able to have that extended. The 10-Q explicitly states "As a result of these uncertainties and other factors, management has concluded that there is substantial doubt about the Company's ability to continue as a going concern."
gopokes88 I hope you are right that the layoff at Devon will be small. My friends that work there have heard it may be substantial.
I know for a fact this is the large majority of their 'reporting'. I've employed several former reporters from the Oklahoman who confirm this and of course, I see all the press releases and then see the Oklahoman article.
They just repackage PR which are highly spun by the companies writing them, to present things in the most positive light.
Good things in the short term with the OPEC cuts + production declines onshore showing up.
Bad news, May 2020 versus May 2019 Oklahoma oil production is down 40%.
https://www.eia.gov/petroleum/production/#oil-tab
Not a good day when a Federal Grand Jury gets involved...
https://apnews.com/11528c3e337d4386a85ecaa7404d1a90
This^...I reserve any judgement when CLR brings suits against its competition, knowing full well that business is first for them and a lack of legitimate competition is in their best interest. However, a federal grand jury handing down an indictment is a hurdle that few are able to overcome. The feds do not simply throw things against the wall to see what sticks.
Seems like this should be pretty straight forward with documents and forensic accounting work. Doubt they would be indicted if a trail leading to them hasn't been established already. But, you seem to be saying that those documents and other traces are being fraudulently created in order to make it APPEAR they are guilty? Are you just vouching for their personalities as you know them, or are you privy to evidence?
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