States that the price of an object is determined not by its intrinsic value,but rather by irrational beliefs and expectations of market participants. A price can be justified by a rational buyer under the belief that another party is willing to pay an even higher price. Anyone in the market for distressed oil and gas properties ?
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Debt/Equity now exceeds 1.1. The numerator cannot be changed quick enough because the trailing 12 EBITDA will continue to fall driving up Debt/EBITDA and destroy equity. We must chop off the legs to save the body before gangrene sets in.
62725, You nailed it. The only thing that can be hoped for is stronger oil and gas prices and "A Greater Fool". For now,it is survival mode. Any plans of going public are "Dead on Arrival".
There's so much debt involved a company purchase seems unlikely unless it's a fire sale. Individual properties, maybe, but that depends on the problems/liabilities associated with them. Who wants to pick up the NBU? CO2 problems, environmental problems, including H2S.