RE:RE:RE:RE:RE:RE:Receipts settling next week at 4.40 I have to weigh in here because oilypants doesn't have a clue about ARO.
ARO was an issue when oil prices were $35. The reason is that the red water ruling makes ARO the first creditor in event of bankruptcy. The approximately $600 million which discounts to under $100 becomes closer to $600 million if bankruptcy is imminent. With oil at $80, there is not a chance in hades of bankruptcy so the discounted value of less than $100 million is the likely liability. In addition, they have drawn down the total liability by a dramatic amount through grants and technological improvements in well retirements.
this was a big issue in 2020 and is currently a non issue. If they continue to pay down debt and oil stays above $45, it will never be an issue again.
Just wanted to clear up the misinformation being spewed by our recent troll oilypants.
Usually these trolls show up when short positions are building and are actually paid posters in support of a large short position. Shortly after the PROP deal is closed we should see stock prices rise and the trolls should evaporate shortly thereafter.