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Baseloaded is right It will most likely wind up like GM did their shareholders in the 08 crash. If they come out it will be with a clean slate. I will buy a Ford from here on but I will NEVER buy another Chevrolet.
Depends on the outcome of bankruptcy. With energy prices down, the equity holders lose leverage. The company has way more debt than equity. From that standpoint, the credit holders will generally take over the company n will leave the former shareholders with souvenirs. I called this thing from a while back. My personal opinion is that you are holding worthless papers.
Question, what will happen to the KWK shares I own or owned prior to the
Chapter 11 filing? Are they worthless or should I hold on to them until quicksilver resources from worth
Emerges from bankruptcy? If anyone has a clue, thanks in advance
Does anybody have a take on this? What's y'all's opinion? Will commons survive?
Keeping the Board updated. New info.
Quicksilver Resources Gets Nods For Extra Exclusivity
Law360, Wilmington (July 7, 2015, 3:14 PM ET) -- A Delaware bankruptcy judge agreed to extend Quicksilver Resources Inc.'s exclusivity period on Tuesday, giving the oil and gas company three additional months to hammer out a Chapter 11 plan aimed at taming a complex capital structure socked by more than $2 billion in debt.
U.S. Bankruptcy Judge Laurie Selber Silverstein signed off on the requested 90-day extension at a hearing in Wilmington, Delaware, stretching Quicksilver's exclusive ability to file a Chapter 11 plan through mid-October.
This stock will rise. Darden family owns 50m shares. They won't let it go. Buy up now while there is still time.
Quicksilver Resources Canada will export up to 20 million tons per year of LNG from British Columbia
Quicksilver Resources Canada Inc. announced that it received approval from the Canadian National Energy Board (NEB) to export up to 20 million tons per year of liquefied natural gas from its Discovery LNG site located near Campbell River, British Columbia, for a period of 25 years.
“We have decided to issue a Licence to Quicksilver,” reads the statement, “subject to the approval of the Governor in Council, to export natural gas… Our role, under section 118 of the NEB Act, is to assess whether the liquefied natural gas (LNG) proposed to be exported does not exceed the surplus remaining after due allowance has been made for the reasonably foreseeable requirements for use in Canada, having regard to trends in the discovery of gas in Canada.”
“In fulfilling this mandate, we recognize that Canadian natural gas requirements are met in the context of free trade within a North American energy market. Depending on regional characteristics, exports and imports contribute to either gas supply or gas demand. It is in this context that we consider whether the Surplus Criterion in the NEB Act is satisfied.”
“We have determined that the quantity of gas proposed to be exported by Quicksilver is surplus to Canadian needs. The Board is satisfied that the gas resource base in Canada, as well as North America overall, is large and can accommodate reasonably foreseeable Canadian demand, the natural gas exports proposed in this Application, and a plausible potential increase in demand.”
Quicksilver Resources Canada Inc. is headquartered in Calgary, Alberta, and is a wholly-owned subsidiary of Quicksilver Resources Inc., based in Fort Worth, TX.
Higher than normal volume??? Let's find out what is going on.
Anyone has any idea?
Thank you.
If you're game - let's get a few questions together you can go ask a 'company rep' for the "$KWKAQ I-Hub Investor's Board"... You will not be denied an 'impromptu meeting' - I assure you. And better yet: the board will be ingratiated to you!
Just ensure you post pictures, names, times, etc. to validate your visit -if/when you go!
So...you 'game'???
$KWKAQ recent news/filings
bullish
## source: finance.yahoo.com
Mon, 11 May 2015 13:52:13 GMT ~ Noble plants big stake in Texas with $2.1B deal for Rosetta
read full: http://sg.finance.yahoo.com/news/noble-plants-big-stake-texas-120007265.html
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Mon, 11 May 2015 13:52:13 GMT ~ Noble plants big stake in Texas with $2.1B deal for Rosetta
read full: http://finance.yahoo.com/news/noble-plants-big-stake-texas-120007870.html
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Fri, 17 Apr 2015 12:57:00 GMT ~ Bankruptcies Suddenly Soar Across Corporate America, Worst First Quarter Since 2009
read full: http://www.thestreet.com/story/13116087/1/bankruptcies-suddenly-soar-across-corporate-america-worst-first-quarter-since-2009.html?puc=yahoo&cm_ven=YAHOO
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Tue, 14 Apr 2015 15:35:07 GMT ~ Moody's: Global speculative-grade default rate rises to 2.3% in first quarter
read full: http://www.moodys.com/page/viewresearchdoc.aspx?docid=PR_322929&WT.mc_id=AM~WWFob29fRmluYW5jZV9TQl9SYXRpbmcgTmV3c19BbGxfRW5n~20150414_PR_322929
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Thu, 26 Mar 2015 19:24:00 GMT ~ Vulnerable Oil Producers Tap Restructuring Advisors To Negotiate With Lenders
read full: http://www.forbes.com/sites/debtwire/2015/03/26/vulnerable-oil-producers-tap-restructuring-advisors-to-negotiate-with-lenders/?utm_campaign=yahootix&partner=yahootix
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$KWKAQ charts
basic chart ## source: stockcharts.com
basic chart ## source: stockscores.com
big daily chart ## source: stockcharts.com
big weekly chart ## source: stockcharts.com
$KWKAQ company information
## source: otcmarkets.com
Link: http://www.otcmarkets.com/stock/KWKAQ/company-info
Ticker: $KWKAQ
OTC Market Place: OTC Pink Current
CIK code: 0001060990
Company name: Quicksilver Resources Inc.
Company website: http://www.qrinc.com
Incorporated In: DE, USA
Business Description: Quicksilver Resources is an independent oil and gas company engaged in the acquisition, exploration, development and production of onshore oil and natural gas, primarily from unconventional resources including shales and coal beds in North America, and is based in Fort Worth, Texas. Quicksilver's Canadian subsidiary, Quicksilver Resources Canada Inc., is headquartered in Calgary, Alberta. The company's oil and natural gas properties in the United States are located in Texas, and its Canadian assets are located in the provinces of Alberta and British Columbia. The company's core development areas include the Barnett Shale, Horseshoe Canyon and Horn River, respectively. The company's exploration area is focused in the Delaware Basin of western Texas. For more information about Quicksilver Resources, visit http://www.qrinc.com
$KWKAQ share structure
## source: otcmarkets.com
Market Value: $6,342,014 a/o May 15, 2015
Shares Outstanding: 183,295,211 a/o Jan 09, 2015
Float: 96,810,074 a/o Jan 09, 2015
Authorized Shares: 400,000,000 a/o Jan 09, 2015
Par Value: 0.01
$KWKAQ extra dd links
Company name: Quicksilver Resources Inc.
Company website: http://www.qrinc.com
## STOCK DETAILS ##
After Hours Quote (nasdaq.com): http://www.nasdaq.com/symbol/KWKAQ/after-hours
Option Chain (nasdaq.com): http://www.nasdaq.com/symbol/KWKAQ/option-chain
Historical Prices (yahoo.com): http://finance.yahoo.com/q/hp?s=KWKAQ+Historical+Prices
Company Profile (yahoo.com): http://finance.yahoo.com/q/pr?s=KWKAQ+Profile
Industry (yahoo.com): http://finance.yahoo.com/q/in?s=KWKAQ+Industry
## COMPANY NEWS ##
Market Stream (nasdaq.com): http://www.nasdaq.com/symbol/KWKAQ/stream
Latest news (otcmarkets.com): http://www.otcmarkets.com/stock/KWKAQ/news - http://finance.yahoo.com/q/h?s=KWKAQ+Headlines
## STOCK ANALYSIS ##
Analyst Research (nasdaq.com): http://www.nasdaq.com/symbol/KWKAQ/analyst-research
Guru Analysis (nasdaq.com): http://www.nasdaq.com/symbol/KWKAQ/guru-analysis
Stock Report (nasdaq.com): http://www.nasdaq.com/symbol/KWKAQ/stock-report
Competitors (nasdaq.com): http://www.nasdaq.com/symbol/KWKAQ/competitors
Stock Consultant (nasdaq.com): http://www.nasdaq.com/symbol/KWKAQ/stock-consultant
Stock Comparison (nasdaq.com): http://www.nasdaq.com/symbol/KWKAQ/stock-comparison
Investopedia (investopedia.com): http://www.investopedia.com/markets/stocks/KWKAQ/?wa=0
Research Reports (otcmarkets.com): http://www.otcmarkets.com/stock/KWKAQ/research
Basic Tech. Analysis (yahoo.com): http://finance.yahoo.com/q/ta?s=KWKAQ+Basic+Tech.+Analysis
Barchart (barchart.com): http://www.barchart.com/quotes/stocks/KWKAQ
DTCC (dtcc.com): http://search2.dtcc.com/?q=Quicksilver+Resources+Inc.&x=10&y=8&sp_p=all&sp_f=ISO-8859-1
Spoke company information (spoke.com): http://www.spoke.com/search?utf8=%E2%9C%93&q=Quicksilver+Resources+Inc.
Corporation WIKI (corporationwiki.com): http://www.corporationwiki.com/search/results?term=Quicksilver+Resources+Inc.&x=0&y=0
WHOIS (domaintools.com): http://whois.domaintools.com/http://www.qrinc.com
Alexa (alexa.com): http://www.alexa.com/siteinfo/http://www.qrinc.com#
Corporate website internet archive (archive.org): http://web.archive.org/web/*/http://www.qrinc.com
## FUNDAMENTALS ##
Call Transcripts (nasdaq.com): http://www.nasdaq.com/symbol/KWKAQ/call-transcripts
Annual Report (companyspotlight.com): http://www.companyspotlight.com/library/companies/keyword/KWKAQ
Income Statement (nasdaq.com): http://www.nasdaq.com/symbol/KWKAQ/financials?query=income-statement
Revenue/EPS (nasdaq.com): http://www.nasdaq.com/symbol/KWKAQ/revenue-eps
SEC Filings (nasdaq.com): http://www.nasdaq.com/symbol/KWKAQ/sec-filings
Edgar filings (sec.gov): http://www.sec.gov/cgi-bin/browse-edgar?action=getcompany&CIK=0001060990&owner=exclude&count=40
Latest filings (otcmarkets.com): http://www.otcmarkets.com/stock/KWKAQ/filings
Latest financials (otcmarkets.com): http://www.otcmarkets.com/stock/KWKAQ/financials
Short Interest (nasdaq.com): http://www.nasdaq.com/symbol/KWKAQ/short-interest
Dividend History (nasdaq.com): http://www.nasdaq.com/symbol/KWKAQ/dividend-history
RegSho (regsho.com): http://www.regsho.com/tools/symbol_stats.php?sym=KWKAQ&search=search
OTC Short Report (otcshortreport.com): http://otcshortreport.com/index.php?index=KWKAQ
Short Sales (otcmarkets.com): http://www.otcmarkets.com/stock/KWKAQ/short-sales
Key Statistics (yahoo.com): http://finance.yahoo.com/q/ks?s=KWKAQ+Key+Statistics
Insider Roster (yahoo.com): http://finance.yahoo.com/q/ir?s=KWKAQ+Insider+Roster
Income Statement (yahoo.com): http://finance.yahoo.com/q/is?s=KWKAQ
Balance Sheet (yahoo.com): http://finance.yahoo.com/q/bs?s=KWKAQ
Cash Flow (yahoo.com): http://finance.yahoo.com/q/cf?s=KWKAQ+Cash+Flow&annual
## HOLDINGS ##
Major holdings (cnbc.com): http://data.cnbc.com/quotes/KWKAQ/tab/8.1
Insider transactions (yahoo.com): http://finance.yahoo.com/q/it?s=KWKAQ+Insider+Transactions
Insider transactions (secform4.com): http://www.secform4.com/insider-trading/KWKAQ.htm
Insider transactions (insidercrow.com): http://www.insidercow.com/history/company.jsp?company=KWKAQ
Ownership Summary (nasdaq.com): http://www.nasdaq.com/symbol/KWKAQ/ownership-summary
Institutional Holdings (nasdaq.com): http://www.nasdaq.com/symbol/KWKAQ/institutional-holdings
Insiders (SEC Form 4) (nasdaq.com): http://www.nasdaq.com/symbol/KWKAQ/insider-trades
Insider Disclosure (otcmarkets.com): http://www.otcmarkets.com/stock/KWKAQ/insider-transactions
## SOCIAL MEDIA AND OTHER VARIOUS SOURCES ##
PST (pennystocktweets.com): http://www.pennystocktweets.com/stocks/profile/KWKAQ
Market Watch (marketwatch.com): http://www.marketwatch.com/investing/stock/KWKAQ
Bloomberg (bloomberg.com): http://www.bloomberg.com/quote/KWKAQ:US
Morningstar (morningstar.com): http://quotes.morningstar.com/stock/s?t=KWKAQ
Bussinessweek (businessweek.com): http://investing.businessweek.com/research/stocks/snapshot/snapshot_article.asp?ticker=KWKAQ
$KWKAQ DD Notes ~ http://www.ddnotesmaker.com/KWKAQ
Holding your shares in the long run pays off. $KWKAQ will multiply at least 10x at the price now within the year. GUARANTEED.
Just stuck my nose out of the elevator at their office. Lights still on, lady at front desk still. Can't really see much else being access controlled badge area.
Why waste your time here with a BK company that has a book value of - 6$ a share, CDI is also BK and has a book of 1.60$ a share, revs of 70 mil comin, a BP claim that could be 200 mil$ and NOLS of 180 mil$, I would rather all of you to take a look.
Oil Prices are moving north just like we expected and the game begins to boggle everyone.
So they (the big oil companies, the rich around the world and those that control the economy) played their game.
They got as many small players out of the game, pushed them all the way to bankruptcy. But guess what, what goes around comes around.
Today instead of KWK going south it needs to go north. Don't get fooled by this red color...We should see some recovery as the weeks go by.
Price Change
2015.04.14 - $ 53.29 +1.38 2.59%
1 Year Forecast
$61 / Barrel
This will be a Visteon story, as debt is expunged and oil prices recover.
Carlyle Group CEO: Oil is best investment right now
Will KWK get an offer soon? Will one of the big funds or a large private equity firm offer to buy them???
Several big investors think the best deals right now can be found in the energy field.
"We're very bullish on the energy sector. In fact, we'd say probably there is no other sector in the world that we are as bullish on as we are on energy," said David Rubenstein, the co-founder and co-CEO of private equity firm The Carlyle Group (CG), on CNBC Monday.
Oil prices have tumbled from over $100 a barrel in the summer to under $50 now. Many big oil companies have slashed spending and laid off workers in response to the rapid fall in prices.
"There will be attractive opportunities to buy now. We do think prices will come back a bit," Rubenstein said.
The Carlyle Group is one of the largest private equity firms in the world. It has about $9 billion to invest in energy assets, including $2.5 billion in a fund dedicated to oil and gas investments outside the U.S.
Related: The 'smart money' is investing in oil now
Other private equity powerhouses are doing the same thing. Blackstone Group (BX) has a $4.5 billion fund and Warburg Pincus has a $4 billion fund targeting energy opportunities.
"Private equity companies are uniquely positioned to capitalize on this. Not only do they have the deep pockets, but they can also take a long-term approach," said Tamar Essner, an energy analyst at Nasdaq Advisory Services.
The question is whether mom and pop investors should follow private equity's lead.
Private equity tends to have a very long time horizon -- their funds often lock up money for several years or even a decade. They are able to buy assets like oil fields or do deals or loans with energy companies in distress.
The Carlyle Group's enthusiasm about energy is telling given that the firm took a substantial hit to profits at the end of 2014 due to the sharp decline in oil and energy assets.
In the stock market, companies like Exxon Mobil (XOM) and ConocoPhillips (COP) have tumbled 20% or more since the summer alongside oil's big plunge. But famed investor Warren Buffett actually cut his holdings of these two companies at the end of last year, leaving some investors to question whether buying them even at depressed levels is a wise bet.
The common shares are worthless.
It is very easy to find out that the common shares are worthless. While I do not know the exact reorganization plan that will be proposed, I can tell you that the common shares will have no part or say in any such plan because they are too far down the list for any rights or recovery. It is possible that even the trade payables and unsecured debt may get nothing in any reorganization plan. All of the information that anyone needs was contained in the quarterly reports for the past year. The company lost money almost every quarter, and that was while oil prices were high, and stockholders equity was about $1 billion negative the entire time. Once you know and understand that, you then would know that the first problem that came along, like oil prices declining by 50% in late 2014, was going to finish the company off. There is no reason why the other classes of unsecured debt are going to allow the common shares to recover anything or have any rights in a reorganization plan unless they are paid in full first. As of the date of the filing, it is very possible that all of the unsecured loans are going to be wiped out also; i.e. the unsecured may get zero because there may not be enough to pay off the secured debt due to expenses from the bankruptcy filing or the problem of selling the assets with oil being down 50% from where it was last year. The problem for the common shares is that the unsecured debt has higher priority in the Chapter 11 than the common shares.
In order for Quicksilver common shares to have a chance at any recovery, the value of the assets would have to at least double within the next few months.
Louis J. Desy Jr.
We'll see. KWKAQ's holding up decently here today after 70% Friday.
You can form a reasonable idea well before the final discharge
True, it is not final until a reorganization plan is approved (Chapter 11) or final discharge (Chapter 7 liquidation) but you can tell what is going to happen well before that time. The reason is that on the day of the filing, you know what the assets are and what the liabilities are, so you can total up the assets, and then allocate them to the liabilities, in order of the priority for rights on the assets.
Here, the assets are about $1 billion short of giving the common shares any rights in a plan so the common shares are going to be wiped out.
Louis J. Desy Jr.
True but it isn't until the final discharge that we will know as each case is unique to itself.
Companies that emerged with shares intact
It is true that there are companies that emerged with their shares intact. If you look at my old postings, I bought shares of Sterling Energy Resources (SGER) and Rancher Energy (RNCH, later became Tex-Oil) after they had filed for bankruptcy. In both cases, the common shares emerged from bankruptcy intact and I made a profit on both holdings.
What was different was that in those situations, the assets were more than enough to cover (pay off) all of the liabilities, leaving the common shares intact.
That is not the case with KQKAQ. They are almost $1 billion short in paying off their liabilities.
Louis J. Desy Jr.
Correct. This is a situation where the Co is still operating. This is clearly different than some others that file for protection and close up shop.
Garyst, thank you sir. Glad you are enjoying them as I do.
Gary, Every time I read those two titles I can't help but smile...why? because I know one day soon we will wake up and see the pps of KWK jump by 20, 30, 40 or even 50 cents in one day.
Just read this and look at everything the company has done so far...nothing leads me to believe they are going to leave shareholders holding the bag.
Quicksilver Resources may seek bankruptcy protection
*** Just those two words say enough...and one of them explains it all...PROTECTION and the below explains why?
U.S. District Court Judge Laurie Silverstein in Delaware signed the interim orders Thursday as part of the Chapter 11 bankruptcy reorganization petition Quicksilver filed on Tuesday.
*************reorganization petition****************
In addition, Quicksilver is authorized to honor working interest obligations, and others related to oil and gas leases. Silverstein will conduct a final hearing on her rulings April 15.
“The Court’s approval is a positive step forward in our efforts to address current financial challenges and to position Quicksilver as a strong competitor in the oil and gas industry,” said Glenn Darden, Quicksilver’s chief executive officer said in a prepared statement.
Just like companies say they do things like going green and reducing emissions, and reducing waste and converting from plastic to recycled materials etc... we need to see this company prove everyone wrong and do WHAT IS RIGHT AND ETHICAL AND ENSURE THAT NO SHAREHOLDER IS LEFT HOLDING A BAG...this in my book is better than money, or any speech or mission statement any CEO on earth would utter.
KWK will prevail...will emerge from BK for the sake of humanity.(IMHO of course). I do not have a crystal ball...but common sense and life experience indicates good things will happen as we move forward. Any doubt...well here is this line again in case you missed it. to honor working interest obligations, and others related to oil and gas leases.
Also, why would a company pay huge bonuses to its leaders if they don't plan to continue operating during this bump in the road and many years to come. They are trying to protect the company they built over the years, they are trying to protect their assets.
Enjoying your posts.
The oil industry has experienced boom and busts before, but the depths to which oil prices have plunged have surprised everyone. Could the bust now persist much longer than many think?
It is not just oil that has seen a bust. Over the last decade and a half, the global economy has witnessed a massive commodity boom, with prices rising for all sorts of raw materials, including gold, iron ore, oil, gas, copper, wheat, corn, and more. But the commodity “super-cycle” appears to be over, with vast new supplies having come online in the last few years.
As prices rose through the 2000’s, multinational companies extracting all sorts of commodities planned billion dollar projects. With new mines, new oil and gas fields, and other commodity supplies hitting the market at the same time, a bust has ensued.
Related: Gains From Low Oil Prices Could Be Wiped Out This Year
“Supply has been outstripping demand not because demand has been particularly weak, but because there was too much supply,” Stephen Briggs, a commodities analyst at BNP Paribas SA, told The Wall Street Journal. “It looks like this won’t change anytime soon.”
The oil bust has captured worldwide attention in a way that crashing coal and copper prices have not. And for now, the bust may here to stay, at least a bit longer than many anticipated.
For example, Goldman Sachs sharply downgraded its assessment for crude oil prices. The investment bank now says that it sees Brent trading at around $42 per barrel over the next few months, down from its previous forecast of $80 per barrel. It also says that WTI will fall to $41, a downward revision of its previous $70-per-barrel prediction.
Many market watchers have predicted a “floor” in prices at each key threshold – $70 per barrel, then $60, then $50. But crude prices have ignored these forecasts, plunging to fresh lows each week over the past few months. Just last week, major hedge fund manager Andrew J. Hall said $40 would be an “absolute price floor,” another threshold that is within striking distance.
Saudi Prince Alwaleed bin Talal threw cold water on the markets even further with his recent comments.
“If supply stays where it is, and demand remains weak, you better believe it is gonna go down more. But if some supply is taken off the market, and there's some growth in demand, prices may go up. But I'm sure we're never going to see $100 anymore,” he said in an interview with USA Today.
As you can see and read for your self...no one has been able to pin point the next move and the next price and those who say oil will not see $100 ever again...how can they say that for sure???
I am not saying they are wrong all I am saying how can anyone say anything with 100% certainty?
YOU KNOW THE SAYING: Do your own diligence...yeah this did not come out for all to know for fun...because we need to know the truth...facts...based on history...things that have happened and for us to learn why they happened. Hope you enjoy reading and learn something along the way.
The recent collapse in oil prices has taken pundits and oil producers by surprise. It was only six months ago that prices were over $100/bbl and at that time they had been above $100/bbl for three and a half years. In fact the stability had become uncanny, so perhaps we should have seen the collapse coming. I would like to claim I had been prescient but sadly I wasn't.
There are lots of conspiracy theories on offer, but it seems to me the root of Saudi Arabia's refusal to defend the oil price lies in its fear of a repetition of the loss of market share that OPEC suffered in the early eighties. But there are good reasons why the 2010's are not the 1980's.
Related: How Plunging Oil Prices Could Create Economic Upheaval
I like to analyze the numbers, as therein lies the explanation for OPEC and more particularly Saudi Arabia's stance. Let’s look back to the early eighties and see what happened to OPEC's market share after the oil price shocks of the seventies.
Oil prices since 1965, in 2015 dollars with both total world oil supply and OPEC market share and spare capacity up until 1990 shown in the background.
OPEC hiked prices twice in the seventies; the first jump in prices slowed down the growth in oil consumption and OPEC's market share slowly eroded, but the move was essentially a triumph for the organization. Their revenue tripled and while their exports were no longer growing that was a small price to pay.
Related: Oil Drop Further Rocks Putin’s Economy
The second jump in the oil price did not turn out so well for OPEC; this time their market share was not just eroded, it collapsed; and on top of that ignominy, global consumption fell for four years in succession. By 1984 OPEC's market share had dipped below 30%. The organization went from being the masters of the oil market to its victims. By the end of the eighties the price was back down to $30/bbl (in 2015 money) and oil companies everywhere had embarked on the endless rounds of redundancies, rationalizations, mergers and cutbacks that has characterized the industry ever since.
It took until 1996 before OPEC could regain a market share of more than 40%. OPEC, and the Saudis in particular, learned the lesson that you can price yourself out of the market. High oil prices encourage energy savings and unconventional production techniques. If you charge too much for your product buyers find alternatives and other smart people find new ways to take your market share away. It is easy to lose your customers and damned hard work to get them back.
So what has happened recently.
Well it took a long time, but eventually world oil demand grew to the point where OPEC no longer had a lot of spare capacity unused. It seems pretty obvious now that we can actually chart all the data, but once OPEC spare capacity fell to around 2% of world oil consumption, the oil price was on a hair trigger. From 2004 onwards the price marched upwards, breaching $100/bbl with ease and briefly touching $147/bbl (in 2008 money) before that high price tipped the world into recession.
Related: These Five Issues Will Impact Oil Prices in 2015
The ascent in prices wasn't really OPEC's work, speculators and traders got the blame, but the oil producers basked in the revenues and the pundits and bankers predicted ever higher prices. But as the saying goes "what goes up must come down" and, just as it has done recently, the oil price collapsed at an alarming pace.
That price collapse, along with a massive injection of cash in the euphemistically labelled "Quantitative Easing Programme", took the nasty edge off the 2008 recession and it wasn't long before oil consumption restarted its modest march upwards. Prices recovered from their lows, and OPEC was once again able to rebuild its market share. But what is really interesting is that this time round OPEC was able to increase its market share, while the oil price averaged $80/bbl. There was no need to endure a prolonged period of $30/bbl oil to recover the ground lost in the price exuberance of 2008.
So it turns out that the early years of the twenty-first century are indeed different from the eighties. In the eighties $100/bbl oil destroyed OPEC's market share; $40/bbl to $60/bbl oil eroded OPEC's share and it took prices as low as $20/bbl to $30/bbl to grow OPEC's market share. Nowadays, $100/bbl to $120/bbl oil slowly erodes OPEC market share, and OPEC can grow exports and market share with an oil price of $80/bbl oil. Why? Well, "Peak Oil" might be an unfashionable theory but the world is slowly marching up the supply cost curve.
The futures market sees this too. Two years ago when the oil price was $115/bbl the futures market predicted that the price would correct back to $90/bbl. Yesterday with Brent trading at $51/bbl the futures market thinks that the price will correct back to $77/bbl.
Related: The North Dakota Boom That’s Going Bust After Oil’s Plunge
So what is an oil producer to do? Well, for sure the stability of the past few years has gone, the notion that oil would stay steady at $100/bbl for a long time was tempting, but only a chimera. For what it’s worth, it seems to me, that a sensible oilman or wise oil investor can plan for $80/bbl prices, they might hope for $100/bbl prices and for prudence they should stress test their projects, business and investments at $60/bbl, but $80/bbl seems the price that we will oscillate around for some time to come.
For traders I have no advice, the price tomorrow could go down just as easily as it could rise, but the longer the price stays below $60/bbl the more dramatically the price will spike when events eventually turn the tide.
Oil industry analysts have been engaging in a burning debate: Have prices hit bottom or do they have further to fall? Energy company CEOs have been voicing their views on the question as they report their quarterly earnings results. The International Energy Agency weighed in as well in a somewhat bearish five-year forecast released Tuesday, saying that oil prices will eventually rebound from current levels but still stay below the $100 a barrel mark.
Here’s a safe call: Get ready for plenty of thrills, chills and volatility along the way. Let's take a look at five key lessons from energy company conference calls so far this earnings season, and at several stocks that will benefit from the next chapter that's about to play out in the ongoing saga of oil price volatility.
Lesson #1: Oil rigs are going offline a lot faster than anyone expected
For energy stocks to keep going up, investors need a steep decline in North American production to drive oil higher. Producers have to shut down lots of rigs.
***SEE MY POINT ANYONE - THEY WANT TO GET SO MANY OF THEM OUT OF BUSINESS AND ITS WORKING...BUT KWK SHOULD NOT BUCKLE AND THEY KNOW WHAT THEY ARE DOING.
This is happening much faster than anyone expected, according to CEOs at three key energy services companies, which help energy companies produce oil. "The speed of the pullback by our customers is a bit unusual," Halliburton CEO Dave Lesar told investors in the company's Jan. 20 conference call. He chalked it up to panic among oil producers about having enough cash flow to pay their bills. Lesar estimated Halliburton customers have already cut their capital budgets by a whopping 25 percent to 30 percent, on average.
"This market is moving pretty quickly," agreed Baker Hughes (NYSE:BHI) CEO Martin Craighead in his company's Jan. 20 call. "I don’t want to say it’s overdone, but I’d say there’s a bit of drama in the marketplace."
Related: Oil Price Could Bottom Out Around $20, Citi Says??
In his company's Feb. 4 call, Atwood (NYSE:ATW) CEO Rob Saltiel described the drilling decline as the largest in nearly 30 years. "We’re seeing U.S. land drilling decline in a big way," he said.
All of this makes sense, because smaller projects in North America are much easier to shut down quickly than big offshore projects, says Jonathan Waghorn, who helps manage the Guinness Atkinson Global Energy fund (GAGEX). "You can drop a rig very quickly. You can drill a well and not complete it. You have various options for how quickly you can turn your spending off."
Lesson #2: A sustained oil price rebound will happen…and relatively soon
The way things are going, North American oil production will decline faster than expected and we will see oil production decline before the summer, predicts Atwood's CEO, Saltiel. Markets often price events in about six months in advance. This explains why oil prices are already stabilizing and heading up, even though North American oil production is also still increasing.
Lesson #3: Oil won't go straight up when it rebounds
Will the oil price rebound be "V" shaped or "U" shaped? Seasoned industry execs at key energy companies definitely favor the latter. "We're not anticipating it being V shaped," says Anadarko Petroleum (APC) CEO R.A. Walker in his company's Feb. 3 call, echoing the view of several other CEOs in the space.
One reason comes straight out of the history books. "There are four times when prices came down [a lot] over the last 30 years. Only once was there a rapid jump back," said BP (NYSE:BP) CEO Robert Dudley, in his company's Feb. 4 call. That was 2009.
Another factor: Though the rigs counts are dropping very fast, oil inventories are building up fast, even inside tankers leased by speculators just for this purpose. "When you have that much storage out there, it takes a long time to work that off," says Lamar McKay, who is in charge of energy production at BP.
One more potential snag: The much more efficient production of modern rigs, cautions Waghorn, at Guinness Atkinson. The rig count decline might take lousier rigs offline while more efficient ones stay on, or come online in the process. In that scenario, production might not actually decline fast enough, or it will happen in fits and starts.
Lesson #4: Volatility will be the norm
The "U" shaped rebound in oil prices means investors should expect plenty of volatility in oil and energy stocks. But there's good news in this. It will make for some great trading, if that's your bent. Or it will give you opportunities to accumulate on pullbacks, if you're the buy-and-hold type.
Just don't get confused by the volatility. Oil is ultimately headed back up, energy executives say. "We don’t anticipate having a worse oil environment in the second half of year," Anadarko's CEO said, for example. "We believe that oil will continue to recover." BP assumes $80 oil in its budgets over the medium term, meaning several years.
Waghorn, at Guinness Atkinson, expects production to slow down enough to send oil to $70 by the end of the year, and then go up after that. Energy companies that would benefit the most are those with higher ratio of fixed costs to variable costs, which gives them the greatest operating leverage, he says. This means their operating profits go up at a faster rate as oil prices go up.
Related: How Plunging Oil Prices Could Create Economic Upheaval
Producers of Canadian oil sands, projects with high fixed costs, fit the bill as long as the producers have solid balance sheets. Two good examples are Suncor Energy (NYSE:SU) and Canadian Natural Resources (NYSE:CNQ), says Waghorn, whose Guinness Atkinson Global Energy fund has outperformed competitors by two percentage points a year over the past 10 years, according to Morningstar.
Brian Hicks, a portfolio manager at U.S. Global Investors Global Resources fund (PSPFX) says a more gradual "U" shaped oil price rebound is needed to get an oil price increase that lasts, since a rapid rebound would not shut down enough supply. Two energy stocks he favors in a price rebound scenario are Devon Energy (DVN) and EOG Resources (EOG).
Lesson #5: Oil prices could spike at any moment
Mike Breard, an energy analyst at Hodges Capital Management, sees a high level of complacency towards geopolitical risk embedded in the low price of oil. For example, only one company — BP — made any reference whatsoever in its earnings call to the potential for violence, or the threat of it, to disrupt supply and spike oil prices. Breard finds this odd given the high number of potential problem spots, from Iraq and Nigeria to Yemen and Libya, just to name a few. "I have never seen the oil price so weak when there is the potential for so much unrest," says Breard.
At the time of publication, Michael Brush had no positions in any stocks mentioned in this column. Brush has in the past suggested BP and OXY in his stock newsletter Brush Up on Stocks. Brush is a Manhattan-based financial writer who has covered business for the New York Times and The Economist group, and he attended Columbia Business School in the Knight-Bagehot program.
That can never be said with certainty about KWKAQ. Until the finality of the case which is a long time out there is no way that we will know that. There have been companies that have emerged with their shares intact. Grant it, a smaller percentage but it does happen.
As we know this (stock market) is like a casino game...but the common denominator here is that the big boys and those that control the wealth on this earth are v. greedy...look around you and see how ever once in a while a certain sector crashes to only rebound...but what people don't realize is that while everyone is selling...someone is buying their shares...kick you out/buy you our for cheap and them when you finally wake up and you realize that they pulled the rug from under your feet...you start to chase it as it starts to rise like an Aladdin flying carpet.
Hang tight, hang on to your precious shares. In short if you held on to them from $3, $2, or even $1. when you bought in, why sell now???
Keep in mind that oil production is also going to drop in response to lower prices. The U.S. active drilling rig count dropped by another 43 for the week ending January 23, 2015 to 1,633. Based on the upstream companies’ capital budgets that I’m seeing, I expect the active rig count to drop below 1,000 by the end of May. We will soon have less than 700 rigs drilling for oil in this country and that means U.S. oil production will be on decline by the 4th quarter. In the last three years, only the U.S., Canada and Brazil have increased production. The rest of the world’s oil production has been in decline despite previous $100/bbl oil prices
Even before the sharp decline in oil prices, global demand for oil was growing at a rate of 1 million barrels per day per year. In my opinion, within six months the rate of demand growth will accelerate to over 2 million barrels per day. Demand could go even higher if consumers adjust their driving habits like they did back in 1986.
The upstream oil & gas producers will soon be reporting 4th quarter results, including updated reserve reports. Now is the time to add the best oil producers and MLPs to play the coming rebound in oil prices.
Sometimes, we need to understand what we read and what the reality is. So what Saudi Arabia is not to decrease production...demand will increase and...please read for your self.
Today’s low crude oil price is blamed on Saudi Arabia’s decision not to reduce supply even though the world is oversupplied by an estimated 1.5 million barrels per day. If gasoline under $2.00/gallon increases global demand for motor fuels by half of the amount it did back in 1986 (2.5%), demand for oil will increase by 2.4 million barrels per day and today’s “glut” will soon fade from memory.
FACT - Oil prices will rise...don't let any of the incompetent analyst tell you other wise...you know why...because non of them told your or new oil prices were dropping to less than $50.00 a barrel...right? See my point.
Hold on to your shares...our pps will be back up. We are not done here yet.
In last week’s article I posted a chart from the International Energy Agency’s recent Oil Market Report that shows global demand for refined products catching up to supply by the 3rd quarter of this year. My opinion is that all of the analysts who are now blaming the sharp drop in oil prices on a “glut” of supply could change their tune quickly as consumers adjust to lower fuel costs. Just as higher costs reduce demand for any commodity, lower costs will increase demand. This is especially true for a commodity that has a direct impact on standard of living, like oil does.
When the price of gasoline plunged below $1.00/gallon in 1986, demand for motor fuels and other refined products increased by almost 5% within twelve months. Today, world demand for hydrocarbon based liquid fuels (including biofuels) is over 92.5 million barrels per day. You can go to the IEA website and see for yourself that normal seasonal demand is expected to push demand over 94.0 million barrels per day within six months. I think both the IEA and our own Energy Information Administration (EIA) are grossly underestimating the price related demand increase that is already starting to show up in the data.
Last week’s EIA report confirms that demand is already surging in the United States. Granted, part of the year-over-year increase in gasoline consumption may be a result of the harsh winter weather we had last year, but I think this story is going to play out. If gasoline prices remain low until this summer, we should see a sharp increase in the number of Americans that decide to take long driving vacations this year. We do love our SUVs.
A good read article - I did not write it. Just an FYI.
Why should we expect oil prices to rise? They have been taking advantage of the American Consumer for years...now the big boys fight...and the little boys benefit...but greed won't allow this to last.
A good read - I wanted to share.
I am writing this article as North Dakota enjoys a reprieve from the record cold weather of early January. Gas prices have risen during the past few weeks to around $2.69 per gallon in Fargo. While national oil prices are dropping under $78 a barrel, it is possible that gasoline and diesel prices will moderate as we approach spring. As spring and summer appear on the horizon, we normally expect gasoline prices to increase. Interestingly, the reason why they increase might surprise you.
Traditionally, gasoline prices rise in the summer because more people travel and take longer vacations. Economists refer to this as increased demand, which leads to higher prices if suppliers only produce a fixed quantity of gasoline. This used to be partially true, but people are now more mobile in general, take vacations throughout the year and fly to destinations rather than drive. Therefore, the miles people travel during the year is relatively stable. The “people traveling more” argument isn’t as important a factor as it used to be.
What is a more important reason is environmental regulation. Since 1990 under the Clean Air Act, the Environmental Protection Agency (EPA) has required the use of reformulated gasoline blends during April through September in major metropolitan cities. This fuel costs more to produce, so it leads to higher gas prices during the summer months. The EPA has estimated the impact to be 2 to 4 cents per gallon. However, this only partially explains the summertime increase.
In addition, the reformulated fuel sold during the summer months doesn’t provide purchasers with the same mileage as winter blends. Therefore, more fuel has to be purchased to drive the same miles. This increase in quantity of fuel purchased also leads to higher prevailing market prices.
Economists also found that petroleum companies have more market power during the summer because of this environmental regulation. Rather than have a single summertime blend, each major city has a unique formulation tailored to mitigating its individual air pollution problem. These unique blends make it difficult to ship fuel from surplus to deficit areas, which would moderate price spikes. Consequently, petroleum companies have more regional monopoly power during the summer months than in winter.
Finally, engineering studies have found that it is quite costly for petroleum refiners to switch from one seasonal blend to another. In addition to reconfiguring their production plants, refiners also need additional storage to segregate both blends and prevent comingling. The investment cost of this additional equipment places even greater pressure on summer blend prices.
I recently attended a national economics conference where three independent studies concluded that, while refineries have dutifully complied with the Clean Air Act and provided reformulated fuels during the summer months, the policy has not resulted in cleaner air. The policy does not specifically direct how refiners must lower volatile organic compounds, so the refiners select the most inexpensive way, which does little to improve air quality. Consequently, consumers are bearing the cost of the environmental policy without deriving any appreciable benefit.
Just thought I would share - credit goes to:
Cole Gustafson, Biofuels Economist
Gas prices drop, but coming summer blend will push them back up
Local gas prices have been falling, but the lower prices at the pump will not last long.
According to the latest figures from online gas price tracker GasBuddy.com, many metro-east gas stations are selling regular unleaded fuel for $2.22 — down by about 30 cents within the past week.
The cost of regular unleaded gasoline has been falling within the past month, but the relief will only be temporary as the coming seasonal switch from winter- to summer-blended fuel will send prices back up.
GasBuddy.com petroleum analyst Patrick DeHann said the seasonal mandated summer-blend fuel is a federal regulation that is both more expensive for consumers and environmentally friendly.
With the coming switch, DeHaan said he expects the average $2.36 per-gallon cost of regular unleaded at metro-east stations to increase by 10 to 20 cents within the next two weeks across the Midwest.
“I would say that over the next couple of weeks prices will probably go up to $2.50 to $2.65 a gallon,” DeHaan said. “It is $2.36 average today, but that is $1.25 lower than a year ago.”
Within the past six months, the nation’s gas prices have recorded the largest drop in prices in recent history. According to GasBuddy, gas stations across Illinois have seen regular unleaded prices drop an average of $1.23 within the last six months.
Statistics from AAA reveal that the average price for metro-east regular unleaded fuel is $1.15 lower than a year ago. AAA spokesman Mike Right said increasing crude oil supply has recently driven down prices.
Crude oil is currently below $50 a barrel as expanding domestic oil production pushed regular unleaded gas prices below $3 a gallon late last year and temporarily below $2 a gallon earlier this year. But Right also foresees rising prices coming.
“What’s going on with crude oil is it affects the price of gasoline as it is going up and down,” Right said. “Some days it comes down 4 or 5 cents, and the next day it is up 3 cents. This is the time of year when you will see a lot of adjustments up and down. I guarantee it is headed north.”
LouisDesyjr, Thank you for your post, very educational. Please allow me to say this. Unless you work for anyone of the companies involved directly or indirectly you cannot say "common shares will be worthless". No one can as no one knows what will happen.
Now, you would be one 100% right if the plan of Bankruptcy is to close down the company and send everyone home...but we know this is not the case. The company is very rich in assets...all we need now is a deep pocket investor to step in and bail the company out coupled with rising oil prices...I have a feeling this will/may happen.
$900 million is a joke for some people, investors, big companies or a bank like JPM, BAC...Imagine if they bail them out and payoff their debt and allow them to continue their operation as normal. I understand they need to sell the oil at a certain price to be profitable...and guess what with every dollar we move about $50...we have a huge chance of getting out of BK.
Oil prices will go up...they may never reach $100, but in the short time they will go up. As you can see they are beginning to trickle up slowly...people keep taking about "we have so much oil now, supply is more than demand...what kind of big fat lie is this...what changed on planet earth? nothing...actually more cars are being put on the road as the population on planet earth is increasing...world population actually topped 1 billion cars and they are doubling every 10 years...
Let's hope for the best for the sake of many interested party. IMHO it is very irresponsible of anyone that walks out on their Debt...be it to lenders, creditors, and specially shareholders.
In my books it is the cowardly way of getting out of being responsible and take ownership of what a person started and promised to do.
Unless we move toward electric cars the demand for oil will always be there and continue to increase.
P.S - they say it is not political...haha..ask me what I know...been there, seen it all with my own eyes and heard it with my ears...the things that take place behind closed doors...this is nothing more than a way to crush so may small players and its working...but cannot continue for long as those in control are losing as well. They are greedy, have been and will always be greedy.
KWK will be just fine and will emerge out of BK. Let's remind each other of this day.
GLTY - Wish you all the best and thank you for the informative posts.
Common shares will be wiped out
I do not mean to be insensitive, but anyone who thinks that the common shares of KWKAQ are going to recover anything in bankruptcy is misinformed. I do feel bad for people who bought the Quicksilver common prior to the bankruptcy filing. As an example, I bought AMZG last year, and sold after it dropped by half ($8 to $4). I was fortunate in that I did not hold onto it as it dropped below $1 or the drop in oil prices (I did not expect the large decline in oil prices last year), and AMZG common shares too will probably end up wiped out in its bankruptcy. If you look at my earlier postings for Quicsilver, even one of the unsecured classes, which is higher in the classes than the common shares for rights in a reorganization plan, looks like it will recover nothing also. If the unsecured creditors can not be made whole, the common shares are not entitled to any recovery as a matter of law.
Even if my some miracle, oil prices recovered, it looks like the damage has been done Quicksilver. The other problem is that there is no indication that oil prices are going to recover for months since Saudi Arabia announced that they will not cut production because they do not want to lose market share.
http://www.businessinsider.com/r-saudi-arabias-opec-governor-hard-to-reach-100-120-oil-again-2015-3
http://www.arabtimesonline.com/NewsDetails/tabid/96/smid/414/ArticleID/213987/t/OPEC-yet-to-%E2%80%98taste%E2%80%99-bottom-of-the-barrel-/Default.aspx
Also, asa recap from my earlier message, here are the secured and unsecured debt the comnpany has and the assets it has to pay it with:
Summary of loans and credit lines, in order of priority with highest priority at the top of the list. The petition lists $1.2 Billion in assets, so here it how it would get allocated:
Quicksilver Resources debts in millions, order of recovery, highest to lowest:
Credit Agreements $325 secured
Second Lien Term Loan $625 secured
Second Lien Notes due 2019 $200 secured
2019 Senior Notes unsecured $298 unsecured only $50 avail.
The above is $1.2 billion.
The other debts that have nothing available to cover them are:
2021 Senior Notes unsecured $325 unsecured
Senior Subordinated Notes $350 unsecured
In order for the common shares to recover anything in the Chapter 11 plan, the company needs another $248 million to make the 2019 notes whole, plus $325 million to make the 2012 Senior Notes unsecured whole, plus $350 million to make the Senior Subordinated Noted whole. After all of those are paid off, then common shares would get something. The total the company needs is another $923 million, and that it providing the company recovers the full carrying value the company has on the $1.2 billion in assets, which is probably nor going to happen.
Louis J. Desy Jr.
Louis same thing was said about fannie mae and Freddie mac...same thing with many other companies. To call this stock worthless is irresponsible. To allow it to trade on the otc market is irresponsible, to allow those in power at every level, every entity to see that hard working people that worked day in day out for years, saved their hard earned money and did what they don't have time or the knowledge to open up a company on their own instead the decided to invest money with a company that supposedly like every company in the United states preaches one thing and does the opposite.
It is very irresponsible of those in power to ignore the innocent shareholders. No matter, what laws, rules, ideas have been put into place...humanity and doing the right thing should come first.
In a few months the price oil will go upas it is due to do so...this is just a game to put companies out of business. The strong will survive, the small ones will close up and go home.
Quicksilver has enough proven assets so sustain and this is why the bk court allowed them to continue and emerge out of bk.
If the stock continue to trade and no one does anything about it on Monday morning then you will see what will happen when they utter the words "shareholders get nothing".
Every single person that had the power to do something about it and did nothing will pay the price. This is what we call unethical behavior, irresponsible, theft in day light& above all corrupt.
Thx for your opinion by the way.
The common shares are worthless
The simple fact is that in the priority of the classes, in bankruptcy cases, the company here is short hundreds of millions of dollars in assets to cover secured creditors and unsecured creditors. The common shares are in order are all lenders and creditors. Most of the unsecured is in line to receive nothing. The common shares are entitled to nothing in the reorganization due to the massive imbalance of liabilities far exceeding assets.
While there may be some spikes upward of the common shares, some traders may call these pikes 'dead cat bounces', the common has no hope and will be wiped out in the reorganization plan, go to zero, and be delisted.
To push or promote any other outcome for the common shares is irresponsible.
Louis J. Desy Jr.
A good read to help your general understanding of what happens when? and why what happens does happen? Hope you enjoy reading.
What influences the price of oil? Contrary to popular belief, oil prices are not controlled by the actions of an individual, regardless of the power he or she may wield. Although it’s somewhat credible that a group, such as OPEC, can influence the price of oil, the issue is much larger than that. The reason for this is that oil is a globally traded commodity with millions of buyers and sellers. The real catalysts for the price of oil are supply and demand plus any event which has the potential to alter the production, transportation, or the perception of it. Let’s take a closer look at this issue.
The price of oil, like many other items, is largely affected by supply and demand. When supply exceeds demand, prices tend to fall. What causes supply and demand to fluctuate? One factor is the economy. When the economy is strong, people tend to travel more and gasoline usage increases. A strong economy also increases the demand for numerous other items which need to be transported from manufacturer to retailer. The number of smaller, more fuel efficient vehicles which are driven versus large autos, heavy trucks, and SUVs, is another important factor. As more electric cars hit the road, demand for crude is reduced. In short, there are a large number of issues which affect the supply and demand of crude oil.
Once again, anything which threatens the production or transportation of crude oil is a factor. This includes political events, natural disasters, and accidents. A recent example of an accident occurred this past Monday, February 16, 2015, at 1:30 P.M. EST. Approximately 30 of the 100 cars of a train carrying crude oil derailed in West Virginia, resulting in a massive explosion. Fortunately, only one home was destroyed and there were no fatalities. It could have been much worse. This incident has rekindled the debate over expanding our pipeline system, which is a much safer and cheaper method of transporting crude. Transporting crude oil through an underground pipeline is estimated to cost about $5 per barrel versus $10 to $15 per barrel to transport by train. However, adding pipeline is expensive.
First, let’s look at three substantial price fluctuations which occurred during this 29-year period. The first was a direct response to the Gulf War which officially began on August 2, 1990. Prices began moving higher about 30 days prior to this as tensions increased in the region. The price of WTI finally subsided as the war ended in February 1991.
Another example involved the housing bubble. At that time, oil prices peaked at $145.31 per barrel on July 3, 2008, before falling to a low of $30.28 on December 23, 2008, 173 days later. Finally, and most recently, oil prices hit $112.31 on April 27, 2014, then moved sideways until June 17 before plummeting to $45.84 on January 27, 2015, 224 days later. In each case, the price of oil experienced a wild price fluctuation in a short period of time.
Every time we get news, let's read it, digest it, understand it and make sense out of it. Some of will read it in a positive way and others in a negative way...this is not bad or wrong...this just comes with experience in this field of investing, financial world etc...
Let's take a look at the recent news:
The Court's approval is a positive step forward in our efforts to address current financial challenges and to position Quicksilver as a strong competitor in the oil and gas industry," said Glenn Darden, Quicksilver's Chief Executive Officer.
"Today's results will give our employees, suppliers, royalty and working interest owners confidence that our operations will continue without interruption."
***- so here is something that I do not like about the sentence above...NO MENTION OF SHAREHOLDERS. Is this intentional, is this a hidden message, is it so shareholders do not put this hopes up high, is it by law, is this what happens when the company declares bankruptcy to save it self. Are these the rules of the stock market? as you can see too many questions but the answer is surly one of those.
The Company also announced that it received Court approval to, among other things, pay employee wages, health benefits, and certain other employee obligations. Additionally, the Company is authorized to honor royalty obligations, working interest obligations, and other obligations related to oil and gas leases.
IMHO- the company has obligations to its shareholders that have given it their hard earned money to help it succeed and reach the growth it wanted. Shareholders are not just numbers on the book, they are human being that breath the same air.
Quicksilver and its U.S. subsidiaries filed voluntary petitions under chapter 11 of title 11 of the United States Code on March 17, 2015. The chapter 11 cases are being jointly administered under the case number 15-10585. Quicksilver's Canadian subsidiaries were not included in the chapter 11 filing and will not be subject to the requirements of the U.S. Bankruptcy Code. Quicksilver Resources Canada Inc. ("QRCI") has reached an agreement with its first lien secured lenders regarding a forbearance for a period up to and including June 16, 2015 of any default under QRCI's first lien credit agreement arising due to the chapter 11 filing.
Quicksilver has established a toll-free Restructuring Information Hotline for employees, suppliers, landowners, royalty owners, investors, and other interested parties, at (877) 940-2410 FREE. For access to Court documents and other general information about the chapter 11 cases, please visit www.gardencitygroup.com/cases/kwk.
The Company's legal advisors are Akin Gump Strauss Hauer & Feld LLP in the U.S. and Bennett Jones in Canada. Houlihan Lokey Capital, Inc. is serving as financial advisor.
The outcome of the shares won't be determined by when a person bought as much as how the final outcome of the case ends. Most often in Bankruptcy plays (but not always) the companies issue new shares when the emerge and start out fresh. At that time the prior shares sometimes become worthless.
BUT, that is a long ways off and anything could happen. In the interim, these plays do have bounces and often times large spikes depending on specific pieces of news as the company goes thru the process.
I wouldn't be at all surprised if KWKAQ doesn't see a few more days next week of some good size upward bounces as new traders grab up some of these shares down here at the bottom looking for a "flip" play.
cofca, you have every right to post you feeling of excitment you seem to be a genuine person. You do not own me an apology.
Enjoy your day and making money. There is a lot that goes on on these boards and I guess I directed my post at the wrong person.
Moving forward, how do you feel about the company, what thery are doing to get out of BK and current news?
Thank you in advance sir!
I am so sorry crawford2012... and my apologies for posting my feelings here...
I just felt happy when I realized that my decison of buying it yesterday (when it looked all dead) yielded some good returns...
I know lot of folks have lost their hard-earned money here.
Your posts is very sentimental and I am sorry you are hurting...
KWKA, that was a quick one for me... love it!!!!
Short interest in this baby is huge! This is going to run hard.
KWKAQ super.... wooowww I got them 400k shares @0.022 yesterday... that's why I trade Qss.. I like them fresh..
It's over a done for the commons...they'll be cancelled when the company emerges from BK.
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Quicksilver Resources Inc. is an exploration and production company engaged in the development and production of long-lived natural gas and oil properties onshore North America. Based in Fort Worth, Texas, the company is widely recognized as a leader in the development and production of unconventional natural gas reserves including shale gas, coal bed methane and tight sand gas. Following more than 30 years of operating as a private company, Quicksilver became public in 1999 and is listed on the New York Stock Exchange under the ticker symbol KWK. The company has U.S. offices in Fort Worth, Texas; Glen Rose, Texas and Cut Bank, Montana. The company’s Canadian subsidiary, Quicksilver Resources Canada Inc., is headquartered in Calgary, Alberta.
Quicksilver Resources, through affiliates, is the general partner of and owns approximately 73% of Quicksilver Gas Services LP, a midstream master limited partnership engaged in gathering and processing natural gas produced from the Barnett Shale formation in the Fort Worth Basin of north Texas. Quicksilver Gas Services was spun out from Quicksilver Resources in August 2007 and is listed on the New York Stock Exchange under the ticker symbol KGS.
Quicksilver also owns approximately 40% of BreitBurn Energy Partners L.P., an independent oil and gas limited partnership traded on NASDAQ under the ticker symbol BBEP. In November 2007, Quicksilver contributed its oil and gas properties in Michigan, Indiana and Kentucky to BreitBurn in exchange for cash and approximately 21.3 million units in BBEP.
777 West Rosedale
Suite 300
Fort Worth, TX 76104
(817) 665-5000
(817) 877-8959
rbuterbaugh@qrinc.com
http://www.qrinc.com
We focus on development of unconventional gas reservoirs found in fractured shales, coal seams and tight sands. Quicksilver's three productive hydrocarbon basins (Texas, Rocky Mountains and Alberta) are all unconventional natural gas plays at different stages of maturity, development and production running the gamut from high-growth potential to long-term sustained production with established infrastructure and facilities.
Marketing and Midstream
The majority of our production from the Fort Worth Basin is gathered and processed by Quicksilver Gas Services LP (NYSE – KGS), a limited partnership in which we own approximately 73% of the partnership interests, including 100% of the general partner.
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