Eckard Enterprises CEO, Troy W. Eckard, was recently quoted in several Bloomberg articles relating to the drop in prices of crude oil. With over 30 years of experience in the oil and gas sector, Mr. Eckard has been able to provide valuable insight as to where this industry is headed in coming months.
Shale Producers Have Found Another Lifeline: Shareholders
March 19, 2015
In Bloomberg’s recent article discussing U.S. oil producers and their increase in issuing new shares, Mr. Eckard was asked what investors should expect of the operators during the temporary downturn. Mr. Eckard stated, “the surge in equity offerings is widely considered the lesser of evils versus expensive borrowing or asset sales at reduced prices”. He was inferring that investors will see more favorable stock options in the market than in previous years.
As producers tap equity markets for solutions to the decrease in prices, investors interested in participating in the industry should view this current state as ideal. Buying at the bottom of the market will allow investors to reap major gains as oil prices recover.
Oil and gas investments opportunities are long-term commitments; however, they provide private investors with hefty returns when prices quickly recover.
No Deal for Shale Drilling Whiting as Stock Sale Announced
March 23, 2015
The largest oil producer in North Dakota, Whiting Petroleum Corp., has fallen the most during the price downturn and is following suit of other shale producers in issuing additional shares to boost their finances.
In Bloomberg’s article, Mr. Eckard explains the reasoning of Whiting’s current strategy stating that “many companies view selling shares as the best option compared to expensive borrowing or selling of assets at reduced prices.”
These recent share offerings have drawn enthusiasm from investors as they place bets on an oil and price rebound. The discounted shares are promising opportunities for private investors who wish to take advantage of this price drop before the prices boomerang.