RE:RE:RE:RE:Debt levelFlush11 wrote
piles of cash and no debt is just brutally bad business. What are you looking for - a bond return? We need a reasonable amount of debt so when we earn a massive return on drilling we don't dilute the cr@p out of the earnings by having too many shares outstanding.
This company SHOULD be run with about 150 to 200 million in debt depending on the covenants required. Dropping to zero is idiotic.
paying 6- 8% interest rates when the IRR on their drilling is 200% at 90 dollar oil?
get a grip.
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Its always the imbeciles like you who are the ones screaming at management when oil prices crash and they cut the dividend and are on the verge of bankruptcy that they should have payed offf debt. Paying off debt and having piles of cash is a good idea for an oil company as when oil prices crash they can use that money to buy assets on the cheap to replace resources they use up. Its also nice not to have to kiss the banks Ar@se to see if they will bankrupt you or not.
The only idiotic thing around here is you.