Sgy Debt Sgy debt can be further looked at as principally 3 buckets : revolving portion (about 150mm) , non revolving (about the same ) and converts
dec 15 is the redetermination for 1 type and mar for the second
converts are trading 30 cents on dollar
all covenants are in compliance on the June report
debt has been going down all year - which is remarkable given crude has been a lot lower than current levels and primarily because of excellent hedge position . Obviously if they are paying down debt and delevering it's much easier to stay inside with lenders despite the epic crash in oil . The concerns start after q4 when hedges above 50 dwindle . Hence equity pricing in the high prob of loans being pulled or lines squeezed . But oil is now $42 ... and structuring 2021 hedges that enable continue debt pay down are getting closer to reality now - if not here already .... we should see equity responsive to further oil upside imho while we still have a little time . But obviously quite risky .