Kausha wrote:They will probably be done with debt late July if not earlier. They had a blinder in April as well. They seem to be very lucky calling prices. Reason they probably are diving back to OTS though I believe it is opportunistic and not rivaling GAPCO.
What do you mean by "
They had a blinder in April as well."?
OTS is definitely opportunistic (& profitable) rather than trying to compete with GAPCO. Now that KK has their debt at 'reasonable' levels, both banks and traders (Glencore, Trafigura) will be happy to finance them thus setting up the stage for more aggressive OTS bidding.
Debt: I disagree. I think KK needs until Dec 2016 to eliminate debt as oil prices have risen to $50 from the $30 level since February when Ohana was gung-ho about zero debt.
Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett