RE:Just dont understandSadieLadyCO wrote: ALL Big oil company's operate with massive debts. Why are we so interested in BNE's Debt so much.
You're right in a way. BNE had too much of it though. However, the debt, compared to cash generation today, is insignificant. The only reason there is focus on the debt is to rid itself of restrictive covenants. The debt is fine at this point.
It also does not make sense to use capital to pay down debt even if that debt is 10% interest or so if rates of return on invested capital are 165% at $80USD WTI on a well. They should have all debt as term debt though. Forget these bank lines that need reviewing every 6 months and the hovering bankers that come with it.