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Thread: US petroleum company - Bankruptcy and consolidation thread

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    Default US petroleum company - Bankruptcy and consolidation thread

    New thread to separate out discussions of US based companies going bankrupt or being rescued by bargain-hunting consolidators.

    Chesapeake is likely to be gone one way or the other soon: https://ca.finance.yahoo.com/amphtml...143727558.html
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    You realize you are talking to the guy who made his own furniture out of salad bowls right?

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    Legacy reserves filed Chapter 11 this year, Concho is down about 50%, all of our other clients in the Permian seem to be struggling, will be interesting to see how the Oxy/Anadarko deal pans out as well, could be crippling. CVX holding it's own though, lucky for them that the Anadarko deal fell through.

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    Pengrowth got bought out on Friday. 0.05/share lol
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    So all these talks about moving to US is BS?

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    When these companies fail and leave behind X amount of wells, X amount of pipelines and X amount of facilities, who is actually responsible for selling them to another company?
    Maybe use houston oil company (the one in the news today) as an example.

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    Quote Originally Posted by nzwasp View Post
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    When these companies fail and leave behind X amount of wells, X amount of pipelines and X amount of facilities, who is actually responsible for selling them to another company?
    Maybe use houston oil company (the one in the news today) as an example.
    Whoever is appointed the Receiver.

    Mind you Houston didn't actually go bankrupt per se. They just told the AER they no longer have any employees. More fall out from Red Water.

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    Isn't that the orphan fund?
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    Quote Originally Posted by msommers View Post
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    Isn't that the orphan fund?
    No the Orphan Well Association isn't the receiver. They will get whatever is left over at the end of the receivership and RDT's and what not.

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    In a bank driven CCAA process, the receiver runs the sale process and if that fails then the orphan fund takes them.

    When companies just shut down without going into CCAA, I'm assuming the crown would still appoint a receiver and follow the same process.

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    Goddamnnit! This is the USA thread. Take your talk of "the crown", Redwater, and the orphan well fund elsewhere.
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    You realize you are talking to the guy who made his own furniture out of salad bowls right?

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    But... What'll be the Thunder arena be called then, @ExtraSlow ?!

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    Let me close a few deals in that city and I'll handle it.
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    You realize you are talking to the guy who made his own furniture out of salad bowls right?

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    It's crazy to think that these US shale companies essentially did this to themselves by becoming too good at producing oil and gas. Chesapeake was one of the pioneers of multi-stage fracking and the technology they helped develop subsequently flooded the entire market with shale gas and ruined their business. Are there other industries where this has happened before?

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    Wonder if a lot of these companies go under if that means gas will rise back up. Or just that the bigger players will grab a bigger chunk of the market. Natural gas going up helps us a hell of a lot better than oil

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    Quote Originally Posted by Perceptionist View Post
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    It's crazy to think that these US shale companies essentially did this to themselves by becoming too good at producing oil and gas. Chesapeake was one of the pioneers of multi-stage fracking and the technology they helped develop subsequently flooded the entire market with shale gas and ruined their business. Are there other industries where this has happened before?
    I don't think that's the issue here. Just like all other industries are starting to show, fueling this growth by racking up debt was going to catch up to them eventually, Chesapeake was run into the ground by Mclendon obtaining way too much debt for growth, same issue as Canada, once production no longer became the primary metric to value O&G companies, trouble started. ESG valuation has started to dominate basic financial measures in O&G.

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    Quote Originally Posted by bigboom View Post
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    I don't think that's the issue here. Just like all other industries are starting to show, fueling this growth by racking up debt was going to catch up to them eventually, Chesapeake was run into the ground by Mclendon obtaining way too much debt for growth, same issue as Canada, once production no longer became the primary metric to value O&G companies, trouble started. ESG valuation has started to dominate basic financial measures in O&G.
    Yes, the biggest change is in how O&G companies are valued. It went from production and production growth, to ROR. Now, we can argue all we want about what's the more sensible metric, but when the finance guys on wall street don't care about debt or cash flow, really why should executives?

    One neat thing is that the private companies who always looked at stable long-term cash flow and profitability first are chugging along happily and will have the opportunity to become consolidators if they choose.
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    Quote Originally Posted by ExtraSlow View Post
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    Goddamnnit! This is the USA thread. Take your talk of "the crown", Redwater, and the orphan well fund elsewhere.
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    Chesapeake... never invest in a company who's name is on a stadium.
    Statistics don't lie.

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    Quote Originally Posted by mr2mike View Post
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    Chesapeake... never invest in a company who's name is on a stadium.
    Statistics don't lie.
    Hm...

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    The list continues even after this article on this poor business dealing was identified.
    https://dealbook.nytimes.com/2012/07...for-a-company/

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