Hey Arlington TX FYI Chesapeake saved by banks for now look at Goodrich & Quicksilver’s NG Bankruptcies

UPDATE 4/25/15 Swift Energy avoided bankruptcy (for now?)

UPDATE 4/19/16 Another one-this one a spin of off Chesapeake called SeventySeven

UPDATE 4/18/16 MORE TX bankruptcies

As of December 31, 2015, Chesapeake had $9.7 billion of outstanding debt. But saved by the banks (the BERNIE cringe?) is what this article says….

http://seekingalpha.com/news/3172735-chesapeake-energy-plus-67-percent-two-days-4b-credit-base-maintained On 4/12/16 Seekingalpha writer wrote of Chesapeake “renewed credit agreement at a time when many oil and gas producers are bracing for large cuts to their credit lines;…”

The banks are betting this low NG cost environment won’t last long. I’ve read comments on how and when NG pricing “should” go back up:

  • that once the oil glut goes away (hyperbolic decline curve + the slow down of spudding new wells)
  • that the rebound of oil prices will extend to the NG sector and raise it’s pricing,
  • plus some are betting on El Nino swapping to La Nina (50% for winter of 2016) and having a really frigid winter(s), and
  • others are thinking the LNG exports will take off…

In January I blogged about when Chesapeake’s stock tanked and brought down with it stock pricing in the midstream sector (piplines/compressor stations).

Yesterday I blogged about another natural gas drilling operator planning debt-for-equity-swap type bankruptcy that cost the investors, but means the operations are not affected…this so as to protect the lenders….  https://barnettshalehell.wordpress.com/2016/04/12/bankruptcy-fracking-investment-in-goodrich-poor-people/

By Patrick Fitzgerald April 1, 2016 4:52 p.m. ET  wsj.com

“Prepackaged bankruptcies—meaning a company files for chapter 11 with an exit plan in hand that has already been approved by creditors—…. senior lenders would be paid in full or have their debt reinstated. The reorganized Goodrich, which drills for crude oil and natural gas in the Tuscaloosa Marine shale formation in Louisiana and Mississippi, would emerge from the anticipated bankruptcy as a going concern with its day-to-day operations substantially intact”.

In contrast to the Goodrich (planned) pre-packaged bankruptcy was the recent ASSET sale of Quicksilver last January  to Blueridge…new owners now and some of these old Quicksilver padsites are adjacent to our Lake Arlington drinking water supply and YES we have laterals under that lake!

And then there is THIS!

 

Regardless of the type of saving graces for these padsites in our neighborhoods from:

  • banks taking on risk (Chesapeake),
  • debt-for-equity chapter 11 (Goodrich), or
  • bankruptcy auctions of assets to new ownership (Quicksilver to Blueridge),
  • asset sales to reduce debt in lieu of bankruptcies

in the end it is the citizens taking on the risk.

We are STAKEHOLDERS in breathing the air living near these padsites & drinking water (surface or ground) that may become or are-already-showing-signs-of O&G contamination (right here in Arlington).

We get to stand by and helpless witness the demise of these padsites (while not an exhaustive list) to:

  • second tier drillers,
  • aging of infrastructures,
  • crazy weather flooding out or hailing out these padsites, and possibly in the future,
  • terrorism targets.

OUR quality of life and risk to OUR health hangs in the balance (or should I say BALANCE SHEETS) in this transitional time that we are trying to break from fossil fuels.

This however is happening in a slow motion pace as we try to starve off global warming which is being worsened by methane leaks from all the mining for fossil fuels that MUST be left in the ground. How can YOU help?  Use less, recycle, repurpose, get solar/wind, go EV etc…..oh and ….elect BERNIE.

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About Kim Triolo Feil

Since TX Statute 253.005 forbids drilling in heavily settled municipalities, I unsuccessfully ran for City Council Seat to try to enforce this. Since Urban Drilling, our drinking water has almost tripled for TTHM's. Before moving to Arlington in 1990, I lived in Norco’s “cancer alley”, a refinery town. It was only after Urban Drilling in Arlington did I start having health effects. After our drill site was established closest to my home, the chronic nosebleeds started. I know there are more canaries here in Arlington having reactions to our industrialized airshed (we have 55-60 padsites of gas wells). Come forward and report to me those having health issues especially if you live to the north/northwest of a drill site so I can map your health effects on this blog. My youtube account is KimFeilGood. FAIR USE NOTICE: THIS SITE MAY CONTAIN COPYRIGHTED MATERIAL THE USE OF WHICH HAS NOT ALWAYS BEEN SPECIFICALLY AUTHORIZED BY THE COPYRIGHT OWNER. MATERIAL FROM DIVERSE AND SOMETIMES TEMPORARY SOURCES IS BEING MADE AVAILABLE IN A PERMANENT UNIFIED MANNER, AS PART OF AN EFFORT TO ADVANCE UNDERSTANDING OF THE SOCIAL JUSTICE ISSUES ASSOCIATED WITH EMINENT DOMAIN AND THE PRIVATIZATION OF PUBLIC INFRASTRUCTURE (AMONG OTHER THINGS). IT IS BELIEVED THAT THIS IS A 'FAIR USE' OF THE INFORMATION AS ALLOWED UNDER SECTION 107 OF THE US COPYRIGHT LAW. IN ACCORDANCE WITH TITLE 17 USC SECTION 107, THE SITE IS MAINTAINED WITHOUT PROFIT FOR THOSE WHO ACCESS IT FOR RESEARCH AND EDUCATIONAL PURPOSES. FOR MORE INFORMATION, SEE: HTTP://WWW.LAW.CORNELL.EDU/ TO USE MATERIAL REPRODUCED ON THIS SITE FOR PURPOSES THAT GO BEYOND 'FAIR USE', PERMISSION IS REQUIRED FROM THE COPYRIGHT OWNER INDICATED WITH A NAME AND INTERNET LINK AT THE END OF EACH ITEM. (NOTE: THE TEXT OF THIS NOTICE WAS ALSO LIFTED FROM CORRIDORNEWS.BLOGSPOT.COM)
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