I own BAS, VOC and HCLP, so yes today is welcome relief. I have a lot of upside to get back to break even (and honestly, more yet to hit my old highs). But I also know better than to start shooting off fireworks and spitting on oils detractors.
So far, word out of the oilfield services is that operations continue apace. This is not unexpected though, as the concern has always been for what would happen if oil prices don’t make further wells economical. Right now, future spending is null and that will be what ultimately drives the prices of companies like BAS (hence the massive drawdown in the name).
As for HCLP, the company is awesome and they have long term supply contracts signed which mandate minimum deliveries, so they are more prepared to weather the storm. But ultimately, again, demand for their product (frac sand) trumps financial tomfoolery like supply agreements.
VOC is a direct play on oil prices, and here I am getting hosed. I need price recovery. I thought I knew what VOC’s oil extraction cost was (which should have spared me concerns of a total collapse), but now the Trust is playing loose and fast, claiming the expenses have dramatically changed. Right… It smells bad, but I would stop short of calamity. Unpleasantness, though, may be an apt description.
I hope the accountants involved all burn in hell.
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