Oct. 16, 2013, 1:11 PM
- After soaring 48% yesterday on speculation of an ouster of Eike Batista, shares of OGX Petroleo (OGXPY.PK +56.3%) complete a 2-day double on local media reports that the company will secure a $200M capital injection from investors.
- A local analyst opined, "For the first time, the market is seeing a solution for the company that doesn't involve judicial reorganization or bankruptcy." The new money would help OGX cover development costs at its oil fields until it begins production at a new offshore oil project by year-end, the analyst believes.
- An obligation to consider: OGX missed a $45M bond coupon payment on Oct. 1, which has a 30-day grace period before OGX defaults.
Sep. 30, 2013, 1:34 PM
- Shares of OGX Petroleo (OGXPY.PK -18.6%) fall further as investors fear the end is near. OGX's $2.56B in debt due 2018 has tumbled to 15 cents on the dollar - Bloomberg reports that the company is set to miss a $45M interest payment due tomorrow, citing 2 sources.
- Sao Paulo magazine Veja reported over the weekend that OGX will file for bankruptcy protection in 2 weeks time as the oil producer's burn rate puts it on the brink of running out of cash to continue operations.
- In a last ditch effort, OGX hopes to receive $250M in new capital from investors in a plan to restructure $3.6B in debt so that it can extend operations long enough to start pumping oil at Tubarao Martelo.
- Shares have collapsed 99% since the beginning of 2012.
Sep. 23, 2013, 10:39 AM
- Eike Batista’s decision to fire the CFO of his embattled OGX Petroleum (OGXPY.PK -6.1%) is expected to heighten tensions with the management team and likely delay the restructuring of $3.6B in debt.
- Roberto Monteiro, removed Friday from his post, was said to be the main negotiator for OGX in the restructuring talks with creditors holding the company's bonds.
- Monteiro’s ouster was opposed by OGX CEO Luiz Eduardo Carneiro, the latest split between Batista and the management team at OGX.
- Update: OGX names Paulo Narcelio Simoes Amaral as its new CFO and investor relations director; Amaral is new to OGX.
Sep. 9, 2013, 3:26 PM
- OGX Petroleo (OGXPY.PK -9.6%) shares slump after Eike Batista challenges OGX's put option exercise, which would force Batista to pump $100M into the cash-starved company immediately and the remainder as needed.
- The beleaguered former billionaire threatened that if the dispute is not resolved in 60 days, he would bring the issue to the arbitration court of Brazil's stock exchange.
- OGX shares skyrocketed 31.4% on Friday on news that the company exercised the put option.
Sep. 6, 2013, 11:27 AM
- Shares of OGX Petroleum (OGXPY.PK +26%) surge after the struggling company demands a $1B cash infusion from controlling shareholder Eike Batista, exercising an option provided earlier by Batista requiring $100M immediately and the remainder to be paid in as needed.
- The move caught the Brazilian market by surprise, as several analysts believed the option wouldn't be exercised since it comes at a very high cost for Batista; he is committed to paying 6.3 reais/share, far above OGX's current market price.
Aug. 29, 2013, 11:19 AM
- Shares of OGX Petroleo (OGXPY.PK -14.2%) are plummeting on reports that OGX's beleaguered controlling shareholder, Eike Batista, will swap $3.6B in bonds for equity and give up his controlling position in the company.
- OGX's $850M deal to sell a stake in its Tubarao Martelo field to Malaysian Petronas has started to crack. As the field fails to live up to expectations, Petronas is attempting to back out of the deal, a move OGX insists it "no right" to before OGX completes its restructuring.
- Although the debt conversion would dilute shareholders, it may be the only option to ease OGX's cash crunch. Analysts speculate the company may run out of cash before year end because of interest payments and drilling costs.
- Shares are down 32.3% this week.
Jul. 30, 2013, 10:57 AM
- Brazil's antitrust agency says it will decide in 30 days if Petrobras (PBR -2.3%) and OGX (OGXPY.PK) violated antitrust laws in a deal announced in November; at the time, PBR agreed to sell its 40% stake in the offshore BS-4 oil block to OGX for $270M.
- If the agency decides the deal without approval, the companies may be subject to fines of up to 60M reais ($27M).
Jun. 5, 2013, 2:40 PMShares of beaten down OGX Petroleum (OGXPY.PK +1.7%) are bucking today's Brazilian selloff on better production numbers; oil and gas output in May climbed to 18.2K bbl/day, recovering from April when the company was forced to repair equipment. Most Brazilian shares (EWZ -1.8%), including Petrobras (PBR -3.6%), are sharply lower. | Comment!
Apr. 5, 2013, 3:07 PMShares in Brazil's OGX Petroleum (OGXPY.PK -13.2%) slump as much as 17%, bringing its one-year plunge to near 90%, after the company controlled by billionaire Eike Batista had its credit rating cut by S&P. Adding to the poor sentiment is a Thursday report that Brazilian President Dilma Rousseff had refused to aid Batista's companies, which include LLX Logistica, now constructing the multibillion-dollar Acu Port. | 2 Comments
Aug. 15, 2012, 2:15 PMOGX Petroleum (OGXPY.PK -5.2%) tumbles after the Brazilian company reports a ~$200M Q2 loss, nearly triple the loss in the year-ago period, blaming a $167M forex loss after the real depreciated more than 10% vs. the dollar. Results also were hit by lower-than-expected production at the Tubarao Azul field, where a well had to be shuttered to replace equipment. | Comment!
OGXPY vs. ETF Alternatives
OGX is the EBX Group company that operates in the exploration and production of oil and natural gas. Created in 2007, the company has a portfolio of potential resources estimated at 10.8 billion barrels of oil equivalent (boe).
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