GREY:PRBEQ - Post by User
Post by
westcoast1000on May 17, 2016 2:51pm
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Post# 24882160
quarter results
quarter resultsClearly selling the hedges was an excellent move that made the quarter reasonable compared to the alternative scenario. Production and well services were way down.
On the other hand, WTI is at 48.32 US today, which is highly encouraging. If we get to $60 this year the company will be fine.
The discussion of "going concern" in the final paragraphs is required by law. I do not foresee them failing to arrange new financing because Morrision's whole set of businesses would be bankrupted. They also are very big in the Louisiana coastal communiites in terms of being a significant employer of people who have been with them for a long time.
So I expect they will be able to arrange financing. If oil gets over $50 in the next six weeks that task will be a lot easier. They will probably repurchase hedges at that time.