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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Ditchdigger who wrote (56962)	2/22/2016 8:00:03 PM
From: Spekulatius	Respond to of 78755

Yes, there is a question whether an gathering contract is just a standard contract, which can be torn up in a bankruptcy situation, or similar to a land deed or mineral right, which cannot be challenged. I don't think the bankruptcy judge will want to go through a prolonged legal quagmire nd will urge both parties to settle, to get whatever needs to be done, done quickly. So, I think it will be some five some/ take some situation, where the midstream company will keep the supply agreement, but terms will need to be made to accommodate the producers (which most likely is losing money now). A prolonged legal battle and possible shut-in is not in the interest of either party, except where there source is not even economic from a cash flow perspective.