RE:RE:RE:RE:RE:Countdown - 150 days until bond maturity Sorry , but i would take a conservative view here. Hedge some amounts atleast to cover operating costs and a portion of debt repayment+interest . They could hedge 25% of production at 70-75 and still knock out left over debt.
MigraineCall wrote: I have always been in ATH as a leveraged bet on higher oil prices for maximum exposure and return. I want a minimum of hedges in place to impede that. Every day that goes by before renewing financing, it delays locking in hedges and improves this scenario and my potential returns. I don't care about present share prices, be it .50 or 1.50, as I think I know what the potential of this company is in the end. Within the next 150 days, there shouldn't be a problem to renew the reduced portion of debt that is remaining with good terms and the smallest hedges possible. These rising oil prices should create a much better environment for that, and they should be able to put down more cash towards debt. I would say to hold off renewing as long as possible, and ride the wave letting it run. We will all see where we are in a year from now and be very pleased with the results.
Tartar3 wrote: At this late date i can see another strategy emerging, let the bonds mature, pay off half with cash, refi the other part with a debt instrument of your own, stock would skyrocket, this will cut loose the banks with their onerous covenants, risky strategy I know, but this would be a $2 stock by next spring if they did it, i think they've mentioned doing something like this on the last cc, purely speculation on my part though