I'm anything but happy kingman when an O&G company files bankruptcy.
There have been approx 65 bankruptcies in this industry just in the past 2 years alone. Hundreds of Billions of dollars in wealth has vanished in thin air. But the real trajedy is thousands and thousands of high paying American oil patch jobs have been lost....possibly forever. Not to mention the ripple effect it had on thousands of other jobs in and around the communities of the oil patch.. teachers, mechanics, grocery stores, banks, restaurants, carpenters, hotels, plumbers, car/truck sales, homes, lost tax revenue....etc etc etc.
It is astounding how far reaching this war on oil goes.
I try to bring balance to the discussion from an investors point of view. I have nothing to say to the daytraders here. They're here to fleece the ignorant..the gamblers...and the naive. It's legal.
You may not like what I have to say but the reality is half-truths..myths..and the lack of cold hard facts is the quickest way to lose on Wall St there is.
These situations are learning opportunities. Is it possible I'm wrong and this case takes a turn to another direction? Of course. Will it? Very very doubtful.
The attempt to form an Official Equity Committee was admirable. A tip of the hat to its leader. But it is flawed. Its the right response to the wrong bankruptcy imo. Plus I don't see any heavy hitters in the mix. If equity had a chance you would see (and hear) hedge funds joining the frackus. That isn't happening...and with good reason..it's never good to stand in front of a moving train and they know it.
I think this will be over very soon. The price of WTI was $49 @ bbl when SDOC filed bk in May..it is now in the neighborhood of $45. SDOC'S situation has gotten worse not better. The judge knows how volitile the price of oil is. It's a moving target. There isn't a soul on the planet who can accurately put a value on the assets. The only real choice an O&G company in this predicament has is to restructure the debt and live to fight another day. Lifes' tough...
It comes with no guarantees.
You do what you think you should. I want you to win. I want all of the shareholders to win.
Best of luck ;)
Chevy
Conservatives divide the world in terms of good and evil while liberals do it in terms of the rich and poor. ~~Dennis Prager
