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Bradley Johnson's picture
User offline. Last seen 9 years 34 weeks ago. Offline
Joined: 03/03/2009
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Can this company stay in business?  It seems like if they're able to acquire reasonable debt that they should be able to service it.  Essentially they're faced with two problems:

1.) Digesting Grey Wolf
2.) Staying in business until natural gas prices rise.

They seem like a buy if they can do those two things, but it seems largely questionable whether they can.  Right now they're financing their purchase of Grey Wolf with their RLOC at 17% interest.  Now they've wisely suspended their dividend, but they have to get some long term financing in place soon.  Does anyone have any insight into their odds of doing either 1 or 2?  Natural gas seems poised for a recovery but I don't really see anyone saying so publicly.