Despite Vanguard’s loss of the Scoop/Stack acreage and a pared-back borrowing base, the company forecasts it will generate a substantial amount of excess cash flow in 2016.
While Aubrey McClendon’s legacy won’t be tarnished by the closing of his final venture, the company will lose 100 employees who had worked under his guidance.
Oil supplies are stable, low prices are expected to continue in 2016 and ‘there are no plans to purchase E&P assets,’ a Korean oil executive says.
Bankruptcies proliferate in May with companies damaged by low commodity prices, which in turn have sunk borrowing bases and choked cash flow.
The company had agreed to purchase about 27,000 net acres for $200 million but was outbid by an undisclosed party by about $140 million.
The company has been purchasing assets since late 2015 and now has production of about 17,000 boe/d located in Karnes County, Texas.