Lights out in 2015/2016?
I hate to say it, but I think SD is doomed. The new debt offering ($1.25 billion with 8.75% rate) will buy the company some more time, but I think the company is too far gone and loaded with too much debt. I can't see revenue rising enough, even if we got back to oil at $90, to save the company.
I think the company will 'stagger' for months to come, but it looks 'fatally wounded' to me with all of the debt they got loaded on the balance sheet.
The only positive thing I can say, is that they lasted much longer than I thought they would, especially after the whole set of problems on the the past CEOs loaded onto the company. I had hope once they voted out that guy that the company would be ok after a few years. If it was not for the decline in oil prices, I think SD would have made it.
Louis J. Desy Jr.
