I am going to go through all the filings this weekend and see what the deal is.
Off the top of my head I wanna say they had 270+ million in cash end of Q1 not sure with avg of 77K per day for Q1 what they would be banking Q2.
Have to see the costs and avg the price out ofr Q2 thus far should be right around 60 for avg BBe. Spent a lot of time low 60's next spent most time mid/high 50's and spent some time low 50's. Off the top of my head I wanna say Q1 avg BBe price was $53?
Have to dig and see, I know the assets and the debts are pretty much a wash they are equally to one another if I remember correctly.
But, if they could buy a lot/all of 2023 debt at a discount that would indeed change the game. They would lose the 6% interest payments as well not have the debt hanging over their heads. I am all for that and am hopeful that is the route they take, I mean they definitely have the cash to do so.
In the article it said they have been fighting production decreases? I don't get that, they slowed drilling to lease committed drilling only, just do what you have to to maintain the leases, in my mind that's common sense in the shale game, more companies should have done that.
If you aren't getting bare minimum $75+ for oild its a recipe for disaster. They held out hoping it would get back to 75 it didn't they changed gears, brought Moelis in and set up a plan to take care of debt and get back to strength. I never understand these companies that are all about the revenue game, I think the tech boom mind set has changed stock valuations over the years and not in a good way.
Its all about increasing revenues, i want profits to increase screw revenues, show more profits, don't do stupid shit to increase revenues be smart increase profits and work towards sending me a dividend every quarter. If a company sends me .25 per share a Quarter I am happier with that than revenues increasing, Nasdaq/Alphabet mindset I call it.
If it costs you 750 million to increase production 250 million a year don't do it, after the interest payments you won't see any profits till you make 1 billion in gross profits to pay off the debt which never seems to happen. Damn near never, just endless raising of cash.
Hopefully after the next tech crash they will finally wake up and say hey, twice now we have had a tech pump and dump first the dot coms then the phones/electric cars lets just admit increasing revenues mean shit if they never make any real money and hand out a dividend, companies just cannot keep going up in share price its ridiculous, that isn't how real wealth is made, dividends are and stability IMHO.
But, what do I know.
Peace out.
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