Watching this company "die on the vine" is painful. The good people are the ones that are suffering because of the incompetence of a few of the leaders...or buffoons if that shoe fits better...many would agree it would. The banks hold Chaparral's future in their hands. This week, we will learn if they have been given a reprieve and can kick the can down the road a little longer or if its "stick a fork in them time".
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Anonymous195822...you are spot on. Look at what you see, not the spin you hear. The reality is this company is drowning in debt and only higher prices along with the banks relaxing debt covenants will keep them around in their current form. They spent their last "hat trick" by increasing proved reserves associated with their CO2 growth story. The only problem with that is they do not have adequate capital to develop those reserves in this low price environment. That really means they are heading off the cliff like "Thelma and Lousie". You have to give it to them though, they have done a good job reaching the point of no return.
Are they acting in the field like a company that has adequate cash flow to keep up with repairs and maintenance? Other than the obvious laying off of employees, that's a pretty good indication of how bad they are hurting.
Blue Bell, you are correct and the key words are "reaffirmation of the borrowing base at $550.0 million". In other words, NO INCREASE. Who said at the all employee meeting that we would get an increase from the banks ? Oh, and by the way we will not go broke...wait for it.........
Hey Dippin Dots, Effective October 29, 2015, the Company's lenders have completed a scheduled redetermination of the borrowing base on the Company's senior secured revolving credit facility, and have approved a reaffirmation of the borrowing base at $550.0 million. The reaffirmed amount continues until the next borrowing base redetermination.