“The senior secured lenders will equitize their debt & come out with 96% of the common stock…” - Petition, said before, & to be said many, many times again
***If you enjoy this newsletter, do us a favor - send it to a friend or colleague***
Another one bites the dust…
Yesterday, Chisholm filed for bankruptcy.
At this point, we think you can guess why…
“Chisholm blamed the filing on production projections for the area that proved incorrect…” - WSJ
It’s like we’re establishing a *pattern*…
…sometimes it’s best to leave things unsaid.
But sometimes, we just can’t bite our tongues…
We had a couple requests following the CDEV Capital Case Study.
This one (below) made sense to share -
We were asked to comp our reserve calculations to SEC pricing.
While we were at it, we re-ran w/ yesterday’s prices:
Price increases are the best cures for sick E&Ps -
[This is not O&G, but it’s relevant]
Wirecard’s auditors finally gave in.
The crime was brazen.
And yet, the fraud persisted - in public - for 18 months…
When Capitalism veers off-course, the economic benefit to society moves from positive-sum to zero-sum.
And the grifters reap the benefits.
The actions of bad-actors result in social reactions like Berkeley’s upcoming Fraud Festival.
During the last crisis, positive-sum American economic growth was infected with a heavy dose of zero-sum mortgage origination fraud.
That hit nearly brought down the global financial system.
And while there wasn’t a fraud festival…
…there was Occupy Wall Street.
Books like “Debt: The 1st 5,000 Years” joined the zeitgeist.
Look, we’re strong advocates for Capitalism.
But we detest actions that give it a bad name.
So, we’d like to take a minute to thank Dan McCrum for his work on Wirecard.
It was not without consequence - people came after him, including:
Corporate governance needs to be cleaned up for capitalism to thrive.
And we’re not counting on regulators to do it -
Earlier this week, Tom Loughery presented a report on DGOC (Diversified).
For us, the biggest take-away was:
“In aggregate, we forecast a 19% base gas decline rate for Diversified. This is a huge discrepancy versus the company’s stated claims of 5%”
If you haven’t already, we recommend the read.
The TX RRC is again reviewing gas flaring
Chevron plans to sell its Aussie LNG project
A good discussion on the impending Ch.11 filing for Chesapeake