Climate: the Conversation
MISSION
STATEMENT: As conversations of weather occurrences and suggested
anomalies become more frequent and mainstream in the scientific
community, as well as at the grass-roots-level, the need to embrace and
index substantive information into an authoritative conduit to encourage
more research and development~~~IS
IMPERATIVE.
As
conversations of weather occurrences and suggested anomalies become
more frequent and mainstream in the scientific community, as well as at
the grass-roots-level, the need to embrace and index substantive
information into an authoritative conduit to encourage more research and
development~~~IS IMPERATIVE.
Pertinent
themes as Global Warming, Climate Change, and Melting Ice Caps has
stimulated discussions, seeded forums, and spawned additional research,
all to foster consensus, and recommend courses-of-action.
The
intent of CLIMATE; THE CONVERSATION, is to be The Bulletin Board, The
Platform, The Podium, and The Credible Source & Bibliography for
such astute, sincere, and scholarly considerations.
Sincerely;
Administrators:
Andrew M. Marconi
Lou Marconi
Oil Crash Risks $19 Billion Wave of Junk Debt Defaults
Updated on Will the Price of Oil Only Go Higher
Lou Marconi (SuiteLou0819)
- At least eight oil and gas producers nearing default
- Deadlines within days for SandRidge, Energy XXI, Goodrich
Investors
are facing $19 billion in energy defaults as the worst oil crash in a
generation leaves drillers struggling to stay afloat.
The
wave could begin within days if Energy XXI Ltd., SandRidge Energy Inc.
and Goodrich Petroleum Corp. fail to reach agreements with creditors and
shareholders. Those are three of at least eight oil and gas producers
that have announced missed debt payments, triggering a countdown to
default.
"Shale
was a hot growth area and companies made the mistake of borrowing too
much," said George Schultze, founder and chief investment officer of
Schultze Asset Management in New York, which has been betting against
several distressed energy companies. "It’s amazing that so many people
were willing to lend them money. Many are going to file for bankruptcy,
and bondholders and equity are going to get wiped out en masse."
Bondholders
are paying dearly for backing a shale boom that was built on high-yield
credit. Since the start of 2015, 48 oil and gas producers have gone
bankrupt owing more than $17 billion, according to law firm Haynes and
Boone. Fitch Ratings Ltd. predicts $70 billion of energy, metal and
mining defaults this year, and notes that $77 billion of energy bonds
are bid below 50 cents, according to a note Thursday.
A
representative at Energy XXI declined to comment. Representatives for
SandRidge and Goodrich didn’t respond to requests seeking comment.
“Absent
a material improvement in oil and gas prices or a refinancing or some
restructuring of our debt obligations or other improvement in liquidity,
we may seek bankruptcy protection,” Energy XXI said in a March 7 public
filing.
Restructuring Plan
Goodrich
Petroleum is asking shareholders and bond investors to approve a
restructuring deal that would convert its unsecured debt and preferred
shares into common stock. For the plan to work, shareholders must
approve it at a March 14 meeting and enough bondholders need to
participate by the March 16 exchange deadline.
"Absent
a successful completion of the recapitalization plan, the company will
have no alternatives other than to seek protection through the
bankruptcy courts," Walter Goodrich, chairman and chief executive
officer, said on a March 9 conference call.
Missed interest payments and potential defaults include:
- Energy XXI, with $2.875 billion in debt, and SandRidge Energy, which owes $4.131 billion, both failed to pay interest due Feb. 16 and will default unless they reach agreements with their creditors by March 17.
- Ultra Petroleum, which owes $3.197 billion, said last week it has until April 30 to hammer out a deal with its lenders.
- Goodrich Petroleum, which owes $455 million, said this week that it won’t pay interest due March 15 and April 1, and that it’s asking bondholders and shareholders to participate in a restructuring plan.
- Chaparral Energy Inc., with $1.798 billion in debt, missed a payment on March 1, starting the clock on a 30-day grace period.
- Pacific Exploration & Production Corp., with $5.428 billion in debt, likewise has until the end of the month under an extension granted by its creditors.
- Venoco Inc., facing $708 million in debt, skipped an interest payment last month. The company must cut a deal with creditors by March 17.
- Warren Resources Inc., which owes $453 million, said last month that it may file bankruptcy without a creditor deal. The company faced a default on March 2, when a 30-day grace period for a missed interest period had been set to expire.
A
representative at Pacific declined to comment, and one at Warren
Resources said the company would release more information about its
restructuring at a later time. Representatives for Ultra
Petroleum, Chaparral and Venoco didn’t return calls and e-mails
requesting comment.
"Asset
managers bought the story that we’d have $100 oil forever," said Tim
Gramatovich, chief investment officer with Peritus Asset Management in
Santa Barbara. "Bondholders are left holding the bag."
A
very insightful essay bringing to the surface the very very delicate
balance that exists on our planet between flora & fauna. The Earth
must maintain this balance so that the Earth's very poignant beauty
and purpose and function~~~~is SUSTAINED.
Its
impact on the economy, pollution, and the focus on Climate; The
Conversation---makes this worthy substance, for continued enthusiasm,
and consideration
Lou Marconi (SuiteLou0819)
HICKOK
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HICKOK
