Dear Service Companies,

Big Operator XYZ here. Remember when we sent you that letter in April that said we needed you to work with us to make our capital investments economic and we needed you to be great partners. We need you to be great partners, again.

You see, our wells don’t make money full cycle below $50/bbl and when you add $3/bbl of G&A, $3/bbl of interest and $3/bbl of advisory fees… well, I’m sure you see the problem.

We are busy kicking the can down the road with our creditors hoping that they are stupid (they lent us money, didn’t they? You saw our balance sheet when we negotiated the MSA! Funny, right?!) and convincing them that we can grow our way out of debt by taking advantage of YOUR low prices. Leverage metrics can’t fix themselves!

Sure, demand won’t return for a number of years, OPEC+ will open the taps in August and billions of barrels in storage will come back to market, but trust us… we know what we are doing. Just look at our track record!

So pretty please, can we use your equipment free of charge on a 120 day payment plan using our shares as collateral until things get better? That would be great!

P.S. About the hunting lodge, can I use that too? Oh, yeah, and I’ll need to borrow your guns for my bankers.

#hottakeoftheday