Replies to This Discussion

Permalink Reply by Dexter Green on February 27, 2015 at 5:29pm

MHR with a debt/EBITDA of 52+.  That's very, very bad.

• ▶ Reply

Permalink Reply by Tim Tarr on February 27, 2015 at 7:03pm

Ah yes, schöpferische Zerstörung. Now impress me and give a list
of who will end up with these assets. Stock holders may lose all, bond and debit may take substantial cuts but; Wells will still produce, gas will remain in place and leases will still be in effect.

I'll bet some of the Big Boy's pull out the check book and buy for pennies.

Oh and great post

• ▶ Reply

Permalink Reply by adam sorell on February 27, 2015 at 7:25pm

I bought MHR exactly one day before oil crashed. I thought it would never hit my limit of 3.80 I'm friggn jinxed i tell ya!!

 

MHR has sold off much of the oil rich holdings most of their holdings are rich in NG. that's what i read. The conference call stated they have enough cash to continue operations for at least 2 years.

NG is falling too which makes no sense because it been a cold ass winter. Me thinks it all a conspiracy to put the stones to Russia. I don't think it can be kept up forever because this economy is in the shitter and one of the biggest boosters to US job market and economy is the shale revolution. I think by next Spring oil will recover.

• ▶ Reply

Permalink Reply by Tim Tarr on February 27, 2015 at 8:24pm

Adam,

    I think the price of oil has all to do with the House of Saud. They want to break the Shale Revolution. Along with some of their neighbors and perhaps Russia.

   Nat. Gas is another story. Right now there is too much production. That includes projected production. Gas in storage is not dropping fast enough. I have my suspicions on those #'s. the graph had strange movements back several weeks ago. But seems I don't trust any numbers from government anymore.

• ▶ Reply

Permalink Reply by adam sorell on February 28, 2015 at 12:50pm

I found a great article on this oil/gas crash. i love 0 Hedge.

Said otherwise, the pound of flesh demanded by Saudi Arabia to "bless" US airstrikes and make them appear as an act of some coalition, is the removal of the Assad regime. Why? So that, as we also explained last year, the holdings of the great Qatar natural gas fields can finally make their way onward to Europe, which incidentally is also America's desire - what better way to punish Putin for his recent actions than by crushing the main leverage the Kremlin has over Europe

http://www.zerohedge.com/news/2015-02-03/another-conspiracy-theory-...

• ▶ Reply

Permalink Reply by Joseph-Ohio on February 28, 2015 at 7:53am

IMHO any government subsidy ought to go to implentation programs to convert from coal, diesel and gasoline to natural gas (public power generation, private freight and public / private transportation) - not to bailouts.

• ▶ Reply

Permalink Reply by Tim on February 28, 2015 at 8:44am

I'll 2nd that one, Joe.

• ▶ Reply

Permalink Reply by Billy Park Whyde on February 28, 2015 at 11:23am

Just a reminder Iran is still a target for Israel. The BIG IF is when and how Iran responds in the Gulf Area. The navigational waters perhaps targeting oil fields in the area as well.

• ▶ Reply