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
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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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.
Pengrowth got bought out on Friday. 0.05/share lol
Ultracrepidarian
So all these talks about moving to US is BS?
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.This quote is hidden because you are ignoring this member. Show Quote
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.
Isn't that the orphan fund?
Ultracrepidarian
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.This quote is hidden because you are ignoring this member. Show Quote
Goddamnnit! This is the USA thread. Take your talk of "the crown", Redwater, and the orphan well fund elsewhere.
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But... What'll be the Thunder arena be called then, @ExtraSlow ?!
Let me close a few deals in that city and I'll handle it.
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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?
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
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.This quote is hidden because you are ignoring this member. Show Quote
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?This quote is hidden because you are ignoring this member. Show Quote
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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Chesapeake... never invest in a company who's name is on a stadium.
Statistics don't lie.
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ScotiaBank
Pengrowth
Little Caesars
The list continues even after this article on this poor business dealing was identified.
https://dealbook.nytimes.com/2012/07...for-a-company/