Extraction Oil Shares Soar Despite Bankruptcy Warning
Ryan Bouley, Opportune partner who co-leads the firm's Restructuring practice, was recently quoted in The Wall Street Journal (WSJ) offering insight into why the stock prices of some upstream oil and gas companies, such as Extraction Oil & Gas Inc., have perked up in recent days for the first time since the COVID-19 outbreak as investors have snapped up shares even after warning it may file for bankruptcy.
Bouley said that Extraction's stock price in particular is rising thanks to the appreciation in commodity prices.
“While it doesn’t always mean that a company’s viability is enhanced by an uptick in equity, with respect to Extraction, it certainly is helpful. What the equity is reflecting is the increased ability to generate cash flow and preserve liquidity, which is paramount in this case.”