May. 7 at 6:42 PM
$HPK ATM is bad but as long as oil stays above
$90 they generate about
$600 million per year of EBITDA - annual interest is
$136 mm so we’re good but oil has to stay above
$75 for them to ignore the ATM - although maybe they tap the ATM to move cheap shares to their handler (Mr Patron Paul Mitchel dude)
Not a great day for the stock - I still want them to sell this to a real oil company who can develop the acreage BUT the one silver lining from today is that 40% of their output is unhedged. 40%!!!
That is extremely lucky for them but still the goal isn’t to just “tread water” for a year or two - the goal is to either pay off the
$1 billion debt and ramp or sell to a company who can take over.
TLDR: Sell for
$13 share and call it a day HPK
