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Is there some news I've missed?
Surprising performance, given that the nekkid short interest has been over 50% for the past 3 days. Yet its holding ground and gaining slightly.
New 8k filed. Looked like settlements on some derivative cases. Too long to read on a phone. GLTA
I've also wondered what the OTC short report actually entails. The tab listing for the graph only specifies "Naked Short Interest".
So What/who does that exactly mean?
Seems to be holding its own today, even despite the blatant hatchet job from wsj. Short, contentless little rehash.
http://www.wsj.com/articles/activist-hedge-funds-wounded-by-former-shale-boom-star-1460712782?mod=mktw
Ya, we've known for 2 months they hired a firm known for putting together pre packs.
OLD NEWS.
The stock is a otc pink sheet, stating the company is "considering" BK is as captain obvious as stating Because more ppl came in than left to the question of why is this room so full?
The measure is what type of restructure they are pushing for. While its possible for common shares to get left in the cold, all their activities suggest they are doing everything to avoid that. It's the absolute last in the line of several options where everyone, debtors and commons can come out ahead with a restructured company that can focus on moving forward with higher efficiency & new properties.
Is 7.5 another support level?
How'd you choose this point?
Yup, nothing new, or of any real substance in that article. Wish they could add something of interest instead of rehashing 1-2 month old crap.
Lets see... stock is in otc, threat of bk if nothing changes.. ya, check. Kind of a Durrrrr there.
Hired advisors to talk about restructuring debt, or other options.... ya, check. Timeframe, 2 months ago when oil was at the bottom, in 20's. The main options longs are betting on are either
oil price improves enough to service ops + debt, or they restructure in a manner that does not wipe out commons.
Potential positives - 1. rally in oil may give them a stronger position to bargain from.
2. Large cash pool to sit on & wait things out if creditors don't play ball. 7-800 mil stll?
3. Cost cutting to preserve liquidity. Production cut 17ish%, working the most profitable wells, cut the rest.
CapEx budget cut 60% to 285 mil.
4. Niobara wells starting to produce
5. 50-60 mil spent on interest + legal settlements, not something they would spend if planning to full BK.
6. 30 day Grace for 2nd int payment not taken. paid on time
Open Questions: To figure out how long they can float
CapEx is est to be 285 mil. How much other operating expenses will there be for 2016? How much will the drawn revolver cost & when?Inc from oil was est around 200mil? (50something a Quarter IIRC? & is this @ Dec pricing for the est?)The Inc should cover a fair chunk of the capex, leaving around 85+ ? to come out of the cash pile.
will stop here until that gets sorted out.
Oil, last night all they had filed was the q4 8-k, He's talking about info from the 10-k they filed this morning. its a LOT longer, about 200+ pages I think.
No, I believe that is in reference to other clauses buried deep within bond or other debt agreements. So its a different issue than the grace period/ on time interest payments.
The "going concern" statement being in an official filing potentially "triggers" those clauses. I don't think its really in the debt holders best interest to push it, but its something that will have to get dealt with, either a waiver, restructure, or whatever. The SA article that came out when they warned mentions it.
SD Just filed 10-k, available on website
They repurchased 400m worth of debt btwn that period. Thats been known a while, so no surprise there. I am wondering if they purchased more in 1Q 16, as on another board they were posting about the bonds selling about 5c on the dollar.
Something to keep in mind is the timing of when they hired the firm.
Right about when oil was hitting the 20's. Its easy to say its scary they hired them, but look at the business perspective from that point. They would not have known oil was going to rally to 40 within a month, & its pretty well known they want to restructure debt. Those were steps in that direction.
Up now on SD website,
Highlights....
SandRidge Energy, Inc. Updates Shareholders on Operations and Reports Financial Results for Fourth Quarter and Fiscal Year 2015
03/29/2016
Reported Adjusted Loss of $.09 per Diluted Share and Adjusted EBITDA of $67 Million for the Fourth Quarter of 2015
2015 Production of 30.0 MMBoe (32% Oil, 17% NGLs)
Fourth Quarter Production of 6.7 MMBoe (30% Oil, 17% NGLs)
Introducing 2016 Capital Spend Guidance of $285 Million, ~60% Below 2015 Levels
Year End 2015 Reserves of 325 MMBoe, 24% Oil, 20% Proved Undeveloped
$1.3 Billion PV-10 Reserve Value at SEC Pricing
Events Subsequent to Fourth Quarter 2015
Spud First Colorado North Park Basin Niobrara Well in January
Terminated OXY Underdelivery Penalties for $11 Million Cash plus WTO Gas Assets
Borrowed $500 Million under Credit Facility
Hired Advisors to Assess Strategic Alternatives
Starting to read the rest......
Seemed like a pretty dull morning, saw lots of red while waiting for Yellen to open her yap. Seeing lots more greens now.
So the CEO "dumped" about 1k worth of shares in mid Feb?
Not sure I'd call him selling 33k shares at .03 a big worry about the company going into BK. Unless there were more filings?