shorty - "They are cleared alright; cleared right out of money!" I can only assume you've avoided my dozens of posts above that document how the vast majority of companies that cleared Chapter 11 bankruptcy came out with much less debt, more lower loan repayment schedules and significant new credit lines. Rather dishonest of you to ignore the published FACTS.
shortonoil wrote:shorty - "They are cleared alright; cleared right out of money!" I can only assume you've avoided my dozens of posts above that document how the vast majority of companies that cleared Chapter 11 bankruptcy came out with much less debt, more lower loan repayment schedules and significant new credit lines. Rather dishonest of you to ignore the published FACTS.
What that has to do with an industry that has a bigger number on the right side of its balance sheet than it does on its left is not quit clear???? All that proves is that W.C. Fields was correct; "a sucker born every day, just enough to make a living"
So this is the business model you based the etp on?
They are not replacing their reserves, and can't replace them for less than about $60/ barrel, so they are going out of business.
On a global basis, most of the integrateds in our study experienced a reserve replacement rate above 100%.
Independents continued to lead the pack, with a 2016 F&D rate excluding revisions of 187%, though this was somewhat tempered from the 239% they experienced in 2015. By contrast to the integrateds, Parsley Energy and RSP Permian posted F&D rates, excluding revisions, of 720% and 608% respectively, the largest of the companies in the study; however, notably their production volumes were near 10 million barrels. Large independents improved to 134% on the same basis, up from 110% in 2015. Chesapeake Energy led this peer group with F&D excluding revisions of 486%, followed by Marathon Oil at 398% and Antero Resources at 372%
With less than 5 years of developed, and producing reserves remaining they don't have long before the bond, and equity holders realize what is taking place, and remove the present management through the courts
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