Post by
exprohibition18 on Oct 21, 2020 1:40am
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 .
Comment by
Primetime1 on Oct 21, 2020 3:34pm
Thank you for your analysis. It is refreshing to hear from someone on this board with a legitimate opinion about the company and its prospects that is based on facts.
Comment by
Primetime1 on Oct 21, 2020 3:37pm
The company will also be saving a lot of money from the elimination of the dividend, which can be used to pay down debt.
Comment by
Maxmoe on Oct 21, 2020 5:10pm
Just use the ignore button for duanne the tub Im dwowning and all the other aliases used by the troll farm gang. Its tedious to have to keep adding every new made up alias from the same gang, but trust me, it eliminates a pile of nonsense. And use the report abuse button for multi user names.