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Anyone know how the debt for equity swap works.
Do the Creditors get the market rate at time of repayment or a predetermined price agreed on at the time of the deal?
Back*
Cool, did think it was weird.
Noticed on the EIA today, US imports were down by 1mbpd.
But so was US production as expected. So, maybe to market was expecting a bigger draw based on that.
But the hurricane would have hit demand a little and also shut down some refinery activity so I'm not too concerned. As you say, it will bounce bad.
Bought some Brent, so hopefully correct
What rumour?
Ha
No, that's not what's happening.
The Mexican government have told the parties to come together to determine how much of the reservoir is in Pemexs block and then Pemex will join the consortium, pay there share of exploration costs to date and have whatever share they are entitled to.
My guess is it's not a substantial share that will have to be given to Pemex
Inventories are still well above 5 year averages.
The lower it stays for longer the better. Keep Shale in check.
Give it time
And how do you expect PMO to pay their debt obligations.
You also assume TD made this decision?
Yeah, chill man.
What did you want him to do differently?
He is charged with carrying out what the board decides.
It not his fault the company needs to refinance
I think once the refinancing is done this will jump 20% or more from whatever sp it has at the time.
Then we will be riding whatever the oil price is. The sp/poo should be a lot better than it was when they came out of the last refinancing. That can be easily checked
I believe we got to circa 1.40 when the oil price hit circa $85.
"just because it has FT in the title it doesn't mean that the data is reliable".
Well, it basically covered every eventually so .......
Yes, I think there was a over enthusiasm when the oil price was jumping above 40, that has waned now. All the oillies are down from that initial period
BP needs to be wrapped up by Sept.
I'm assuming that part is the bit underwritten by the creditors.
The rest they have just said Q4 2020
"Net debt will fall to $1.7bn immediately and with an equity value of c.£350m (if oil prices stay about the same), the SP will close the year at 8p per share."
Why wouldn`t you increase the Market cap to reflect the reduction in debt and the new assets purchased?
Well, they're looking for $500ish million.
That's about 500 ÷ 1.3= £385m
£385m ÷ 0.22 = 1748m new shares
Money will go towards paying down debt and purchasing new assets.
So, once complete, I believe, the market cap will raise by at least the value of the debt reduction/assets. Which will be a considerable rise in market cap
Like what?
The only other option is to pay down the debt with earnings in less than a year.
It's improving the balance sheet, that will have a positive affect on the market cap to such an extent that it will represent value added to the sp. For everyone!
I'm totally with you Neon. I have no problem with dilution if it's paying down debt and buying value assets. And it doesn't matter a dam what the sp is at dilution. The value added will be reflected in the market cap. If they get this done, which I believe they will, watch this fly
Oil is coming back. Even the EIA has been saying there is a short fall coming in the next few years due to under investment for years now. And that was calculated further rises in Shale production. Now even that looks like it's going to suffer from underinvestment in the coming year.
The EIA is usually spot on.
Yes, we are turning away from oil but it's not going to happen quick enough for there not to be supply shock in the coming years.
People saying that $55 oil next year is unrealistic are not correct imo.
It reached $85 two years ago with shale pumping hard. That's not going to happen this time.
Hang tough
The hurricane is this week though, right?
We should get an another big draw next week .....
$500,000,000÷1.30 = £384,615,385
£384,615,385÷£0.23= 1,672,240,802 shares (new)
Total shares after issue = 1,672m + 922m = 2594m
Market cap (£212m)+assets bought/less debt (£384.6m)= £596.6m
New market cap (£596.6m) ÷ new total shares (2594) = SP £0.229