RE:RE:RE:Not manipulated just an energy stock
Oldnagger wrote: I almost forgot ,one more point. Even if Opec put the price of crude back down below zero tomorrow. The the price of nat gas would rise so high that VET would be better off.
some of these institutional investors should be kept in institutions. You can rest assured that they are not working in your best interests.
Well, no.
If the price of oil went to Zero, and stayed well below any hopes of profitability, as time went on (but it wouldn't take very long) VET's ballance sheet would rapidly deteriorate they would end up breaching the covanants of the bank line, the banking syndicate would elimanate any new borrowing and then force them into a takeout / Take-under if possible, if not the debt would be called and the company would be liquidated.
In this scenario BK is the more likley outcome as the weaker corps (and there are a lot of them) would be absorbed first, by the time VET got called the stonger corps would not even bother as there would be so many other assets being liquidated in bankrupcy proceedings.
Based off there current 16/17/38/29% preduction split, they would not be able to survive off NG alone.
It would be a complete rapid disaster.