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 Posted: Mon, 15th Feb 2016 03:40 Post subject: |
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| Posted: Mon, 15th Feb 2016 18:49 Post subject: |
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Paragon Offshore plc files for bankruptcy, restructures its debts. The stock was up 300% Friday, now its game over.
just lol if this shit happens to EXXI too. Will trade for nickels
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| Posted: Mon, 15th Feb 2016 18:58 Post subject: |
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thats sarcasm btw
lets hope EXXI can make the deal aswell
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| Posted: Mon, 15th Feb 2016 19:50 Post subject: |
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BK isn't even close given all the purchases of the bonds for the unsecured debt. If BK was close no one would have touched those bonds.
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| Posted: Mon, 15th Feb 2016 20:19 Post subject: |
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what a perfectly bullish day wasted for Presidents Day
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HubU
VIP Member
Posts: 11364
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| Posted: Tue, 16th Feb 2016 18:55 Post subject: |
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| Quote: | Houston, Texas-based Energy XXI Ltd. EXXI is involved in the exploration, production and development of oil and gas resources. The company’s properties are located in Gulf of Mexico, Louisiana and Texas.
Currently, Energy XXI has a Zacks Rank #3 (Hold) but that could change following its second quarter of fiscal year 2016 earnings report which has just released. We have highlighted some of the key details from the just-released announcement below:
Earnings: Energy XXI reported loss per share − excluding onetime items − of $1.93, came wider than the Zacks Consensus Estimate of loss of $1.16.
Revenue: Quarterly revenues of $184.6 million failed to beat the Zacks Consensus Estimate of $206 million.
Key Stats: During the quarter, the company produced 5 million barrels of oil equivalent (MMBOE), slightly below the year ago quarter figure of 5.3 MMBOE. |
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| Quote: | Feb 16 (Reuters) - Oil and natural gas producer Energy XXI Ltd said it chose not to make an interest payment due on Tuesday, to continue talks with its debtholders related to alternatives to improve its capital structure.
The company, which has a grace period of 30 days to make the payment, said it has retained PJT Partners LP and Vinson & Elkins LLP to advise its board in reviewing its debt.
Crude prices have slumped nearly 70 percent since June 2014, forcing oil and gas producers to restructure debt or seek bankruptcy protection.
Houston-based Energy XXI had $3.62 billion in long-term debt, excluding current maturities as of Dec. 31.
Net loss attributable to the company's shareholders widened to $1.31 billion in the fourth quarter, from $278.8 million a year earlier. |
"Music washes away from the soul the dust of everyday life." ~Berthold Auerbach
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Il_Padrino
Posts: 7573
Location: Greece by the North Sea
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| Posted: Tue, 16th Feb 2016 20:29 Post subject: |
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So I quickly read through form 10-Q available on SEC homepage and it seems the situation is extremely bad at the moment. I decided not to buy EXXI shares.
| Quote: | | As a result of the commodity price decline and the Company’s substantial debt burden, absent a material improvement in oil and gas prices or a refinancing or restructuring of our debt obligations or other improvement in liquidity, the Company believes forecasted cash and expected available credit capacity will not be sufficient to meet commitments as they come due for the next twelve months. This raises substantial doubt regarding the Company’s ability to continue as a going concern. |
| Quote: | | We cannot assure that any refinancing or debt or equity restructuring would be possible or that additional equity or debt financing could be obtained on acceptable terms, if at all. We are also focused on long-term recurring cost reductions and the identification of non-core assets for potential sale. We cannot assure that any of these efforts will be successful or will result in cost reductions or additional cash flows or the timing of any such cost reductions or additional cash flows. |
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HubU
VIP Member
Posts: 11364
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| Posted: Tue, 16th Feb 2016 20:34 Post subject: |
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http://realmoney.thestreet.com/articles/02/16/2016/energy-company-skips-interest-payment-seeks-alternatives?puc=yahoo&cm_ven=YAHOO
| Quote: | | As a result of this default, certain restrictions have been placed on the company, including but not limited to its ability to incur additional indebtedness, draw on the Revolving Credit Facility and issue additional letters of credit. The company has 30 days to cure the default by making the required interest payment that was due on Feb. 16, 2016. Alternatively, the company may restructure the debt with its creditors. On March 17, 2016, if the interest payment default is not cured, the default would be considered an Event of Default and the trustee or the holders of at least 25% in aggregate principal amount of then outstanding 8.25% Senior Notes may declare the principal and accrued interest for all outstanding 8.25% Senior Notes due and payable immediately |
"Music washes away from the soul the dust of everyday life." ~Berthold Auerbach
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| Posted: Wed, 17th Feb 2016 03:23 Post subject: |
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All doom and gloom; No one actually read the earnings report they are referencing.
Lease Operating Expenses (LOE) decreased 26 percent year-over-year
$88 million in 2Q 2016, decreased from $119 million in 2Q 2015
Approximately $1.7 billion in face-value debt repurchased in the past seven months
Annualized interest savings of $137 million, over $6.50 per barrel of oil equivalent (BOE)
Total liquidity of approximately $391 million, as of January 31, 2016
Oil production remains on track for mid-point of full year guidance
2Q 2016 net liquids production averaged 37,900 barrels per day
2Q 2016 total net production averaged 54,500 barrels of oil equivalent per day (BOE/d)
They confirmed they are the ones that have been buying the bonds.
| Quote: | | Over the past seven months we drastically lowered future interest expenses, resulting in annualized savings of $137 million, by repurchasing more than $1.7 billion in face value of bonds at a cost of $216 million, or a weighted average of $0.13 on the dollar. |
Again, there is no reason to waste their liquidity on buying bonds for unsecured debt if they planned on declaring BK.
They are purposely not paying the interest because they are trying to force a deal now that they've cleared most of their debt via the bond purchases. This is all part of the plan.
The doom and gloom is incredible. Note how none of the big news sources reporting on EXXI mentioned the $1.7B in bond purchases.
Again; Why would they literally waste $216 million of free cash to clear out 1.7B in debt if they were planning on going the BK route. The entire purpose of going the BK route is to clear out debt.
The fearmongering has been absolutely incredible. Of course, a lot of this plays into management's strategy so they can make a deal due to the fear.
Of course I could be wrong, but again the facts are the facts. It makes ZERO sense for a company to waste $216 million on unsecured debt if they were on the verge of bankruptcy. Anyways we'll know in 30 days. Either a deal will be declared or they will declare BK.
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| Posted: Wed, 17th Feb 2016 04:18 Post subject: |
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So will you then buy some more exxi now, that they are so cheap? I'm getting some 600€ expense reimbursement next month, so I guess I'll bet a small amount on exxi. Great my cunt bank doesn't allow buying exxi WTF?
Will call em tomorrow. If it doesn't work, I'll cancel that account and go for comdirekt.
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| Posted: Wed, 17th Feb 2016 05:18 Post subject: |
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I avg down at 42c, coming up on two shit months in crude oil price too early for BK, think this is strategic. Going to be rich when this thing snaps back.
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| Posted: Wed, 17th Feb 2016 07:13 Post subject: |
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Anyone stuck with EXXI right now should reevaluate his tactics and focus on return of capital rather than return on capital. Selling into a dead cats bounce seems reasonable.
| Quote: | | Beginning on January 11, 2016, our common stock has generally traded on NASDAQ at less than $1.00 per share. If at any time our common stock falls below the minimum bid price of $1.00 per share for 30 consecutive business days, NASDAQ will send a deficiency notice to the Company, advising that it has been afforded a “compliance period” of 180 calendar days to regain compliance with the applicable requirements. If the Company is unable to resolve its bid price deficiency during the applicable compliance period, NASDAQ Staff will issue a delisting letter. There is no assurance that the price of our common stock will comply with the requirements for continued listing of our shares on NASDAQ. A delisting of our common stock could constitute a “fundamental change” under the terms of our $400 million aggregate principal amount of 3.0% Senior Convertible Notes due 2018 (the “3.0% Senior Convertible Notes”). If a Fundamental Change occurs at any time prior to the maturity of the 3.0% Senior Convertible Notes, each holder shall have the right to require the Company to repurchase all or part of such holder’s 3.0% Senior Convertible Notes in a principal amount thereof that is equal to $1,000 in principal amount or whole multiples thereof, on the date (the “Fundamental Change Repurchase Date”) specified by the Company that is not less than 20 nor more than 35 calendar days after the date of the Fundamental Change Company Notice at a repurchase price, payable in cash, equal to 100% of the principal amount of the 3.0% Senior Convertible Notes being repurchased, plus accrued and unpaid interest to, but excluding, the Fundamental Change Repurchase Date. We cannot assure that we would have adequate liquidity to fund a repurchase given the severe liquidity constraints of the Company. Such acceleration would cause a cross-default or cross-acceleration of all of our other outstanding indebtedness. |
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| Posted: Wed, 17th Feb 2016 17:05 Post subject: |
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They have 5 months to get above a dollar.
In 30 days they will declare BK or declare the debt swap.
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Il_Padrino
Posts: 7573
Location: Greece by the North Sea
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| Posted: Wed, 17th Feb 2016 17:14 Post subject: |
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CRK is a good choice, it's just that they don't have the potential reward EXXI does. EXXI is safe once this debt swap is declared, and we'll know in 29 days.
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| Posted: Wed, 17th Feb 2016 22:29 Post subject: |
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Does it matter where I buy crk?
In NYSE Euronext it is at 1.235 at stuttgart it is at 1.031 and in frankfurt it is at 0.970 ?
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HubU
VIP Member
Posts: 11364
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| Posted: Thu, 18th Feb 2016 02:57 Post subject: |
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Just a general economical question (not by me):
| Quote: | | If the economy had to stand on its own two feet right now — without the help of the Federal Reserve — it would need a very sturdy cane to help it creep forward. If you have doubts about that, ask yourself the following question: “If the economy is truly healthy, why is an easy money policy still in place?” |
"Music washes away from the soul the dust of everyday life." ~Berthold Auerbach
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| Posted: Thu, 18th Feb 2016 05:58 Post subject: |
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| PumpAction wrote: | Does it matter where I buy crk?
In NYSE Euronext it is at 1.235 at stuttgart it is at 1.031 and in frankfurt it is at 0.970 ? |
Question still stands, and is this the right one?
COMSTOCK RESOURCES INC. REGISTERED SHARES DL -,50
WKN / ISIN
891393 / US2057682039 |
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| Posted: Thu, 18th Feb 2016 06:59 Post subject: |
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@PumpAction I'm not sure what the situation is trading in Europe but I had to open a US bank account with Pershing to trade on NYSE or NASDAQ. I'm trading via one of our major banks.. Was a massive pain in the ass to be honest lots of paperwork to get going.
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| Posted: Thu, 18th Feb 2016 07:14 Post subject: |
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OK I just bought 300 with a limit of 1,15. Let's see how this will turn out.
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Il_Padrino
Posts: 7573
Location: Greece by the North Sea
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| Posted: Thu, 18th Feb 2016 08:37 Post subject: |
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Sorry with bought I meant that I set an order. My depot apparently suggested frankfurt as trading location. Let's say I buy them in frankfurt for 1,15 can I sell them on nyse later on?
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| Posted: Fri, 19th Feb 2016 05:38 Post subject: |
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I have no comment on how to trade US stuff outside of the US. In the US it's really easy obviously.
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| Posted: Fri, 19th Feb 2016 20:54 Post subject: |
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The problem with EXXI debt restructure imo is that I see no way the current shareholders could get more than 5-10% of equity when the deal with secured debt holders is made.
The company is done. Price was 0.4817 on 16th February when I predicted its all over. Ill check back in a month, hopefully I was wrong. Best of luck.
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| Posted: Sun, 21st Feb 2016 08:17 Post subject: |
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| vitupuuks wrote: | The problem with EXXI debt restructure imo is that I see no way the current shareholders could get more than 5-10% of equity when the deal with secured debt holders is made.
The company is done. Price was 0.4817 on 16th February when I predicted its all over. Ill check back in a month, hopefully I was wrong. Best of luck. |
You might want to read the articles i've posted. It details why management is holding all the cards in this case. The company is far from being done with $400 mil cash still in hand and the ability to wipe out the rest of unsecured debt for only $20-30 mil.
Not sure where you grab 5-10% from, the way the exchange is going to go down if the plan continues to follow common shareholders will not impacted, and at this point BK is unlikely given what is happening with the bonds.
Keep in mind that EXXI had enough cash to last at these prices until October. They are purposely using the current market turmoil and forcing the issue for a swap.
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HubU
VIP Member
Posts: 11364
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