Beware: The Only Time Cutting Energy Debt is Actually a Bad Idea

by | published June 16th, 2016

As crude oil prices languish in the run up to what could be a historic UK vote, on June 23, to leave the EU, another problem is surfacing for beleaguered U.S. oil firms.

More of them are either swapping debt for equity, or thinking about it.

The advantage of these swaps, of course, is that they remove debt from the oil companies’ books, thereby improving their financial snapshot.

But there’s a downside, and it may more than offset the short-term benefits. As oil prices remain below $50 a barrel, companies could simply be exchanging one negative for another… and the shareholders are caught in the middle.

Here’s what you need to know to protect your portfolio…

The One Clear Winner from a “Brexit” Win

by | published June 14th, 2016

Here in the U.S., a wave of popular discontent with the powers-that-be has resulted in growing support for Donald Trump, Bernie Sanders, and other “anti-establishment” politicians.

In London, similar dissatisfaction is increasingly pointed at the European Union…

And the current British Prime Minister, David Cameron, may have significantly misread the political climate and put his newly-won parliamentary majority in jeopardy. The upcoming referendum on whether the UK should stay in the EU or leave, to be held on June 23, is going against him.

But politics isn’t the only thing being rocked…

The debate over whether the British should exit the EU (called “Brexit”) is also impacting the price of oil and the prospects for a wide range of energy companies.

And if the vote turns into a Brexit victory, the repercussions for the markets will be even greater.

Only one thing is for sure… a vote to leave the EU will create one clear winner, much closer to home than you might think.

Here’s what I mean…