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Fracking industry projected to have $300B in losses

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Posted (edited)

I’d probably panic if I got down to my last BILLION!    😱

 

 

Diversifying with a little ‘ole NFL team probably is a good thing in the long run. They tend to do kinda OK, even in the current environment. We love our entertainment! 

 

 

.

Edited by Augie

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8 hours ago, eball said:

They're going to sell the Sabres.  Just watch.

 

I don't see it.  Terry loves them.

 

4 hours ago, BobChalmers said:

https://www.cnbc.com/2019/11/10/nfls-richest-billionaire-owners.html

 

That's what CNBC says.

 

"His company, East Resources, sold most of its assets to Royal Dutch Shell for $4.7 billion in 2010. Pegula used some of those assets to build a portfolio of sports properties, including the NHL’s Buffalo Sabres and the Bills. "

 

For a relatively small and economically struggling city like Buffalo to have such wealthy team owners is an incredible blessing.  Among other things, it means we don't need to spend a lot of time fretting about the OP...

 

The internet.  It's amazing.  :rolleyes:

 

Also noteworthy from the list, I thought - Terry Pegula is the 2nd youngest owner in the top 10 (and the very actively involved Kim considerably younger than Terry) - so not only do we have wealthy owners (both of whom are area natives too), we probably have a lot more stability ahead than most.

 

 

 

He also sold the Ohio and West Virginia assets to American Energy Partners, LP for $1.75 billion in 2014.  That's $6.45B.

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8 hours ago, PromoTheRobot said:

The Pegulas aren't the only owners in trouble. Many owners borrow against the value of their teams because up till now it was guaranteed to increase in value 5-10% annually. The Houston Rockets owner just borrowed $300MM using the team as collateral. But banks are getting tight sphincters for lending these days. So expect many more stories of teams "getting lean."

 

The Sphincters sounds a good name for a Texas team if bank forecloses on it and tries to rebrand it.

 

And the issue of it impacting Pegulas is fracking overreacted, 

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I don't have any idea what the Pegulas' holdings consist of.  I do know that at the current level of oil prices, even conventional drilling costs more than an oil company is likely to make from it.  Fracking is much more expensive, so it can't possibly be profitable.

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58 minutes ago, TigerJ said:

I don't have any idea what the Pegulas' holdings consist of.  I do know that at the current level of oil prices, even conventional drilling costs more than an oil company is likely to make from it.  Fracking is much more expensive, so it can't possibly be profitable.


Doesn’t matter unless he reinvested back into oil and gas. He sold a majority of his holdings in the last 5-10 years. 

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How this survives here is beyond me.

2 hours ago, mellaman101 said:

Every time I read one of these post, I have a flashback of the time I tasted my pee in the bathtub....

and?

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Posted (edited)
10 hours ago, ExWNYer said:

 


A flashback to my youth.  We had a siren on the corner, half a block away, that went off at noon every day.

 

Edited by ColeB
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I hope it's true that the Pegulas are loaded, and aren't at risk if the fracking industry tanks.

 

But there's some reason they slashed staff.  If it isn't money, is it that they just threw up their hands and figured, let's start over?  Or, hey, we've been losing after we spent a lot of money, so let's try not spending and see what happens.

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9 hours ago, ColeB said:


A flashback to my youth.  We had a siren on the corner, half a block away, that went off at noon every day.

 


Cole, is that the one by the volunteer fire dept. in Hamburg on South Park Ave.  If so, I grew up just five blocks from there.  You brought back a memory. Anyway, funny reference.  Seriously though, nothing will happen to the Bills.  The Pegulas May have to do more layoffs like many industries, and I don’t see many billionaires who would want to the Sabres.  They would never sell a cash cow like the Bills.

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Posted (edited)
20 hours ago, Mrbojanglezs said:

Didn't Terry already sell most of his fracking land so that money is already liquid or been re-invested in something else? Not really sure how much of his current wealth is depending on ongoing revenues from fracking...

 

"Pegula got into the fracking business in 1983 with a $7,500 loan from friends and family. His sale of the company in 2010 to Royal Dutch Shell netted him about $3 billion as majority owner. He subsequently sold company assets in Ohio and West Virginia in 2014 for $1.75 billion to American Energy Partners"

https://www.investigativepost.org/2018/05/08/pegula-back-fracking-and-violating-regulations/#:~:text=Pegula got into the fracking,billion to American Energy Partners.

Everyone does not get the reality. He got into the oil and gas exploration business  in 1983 to use conventional techniques. He was just a little  guy in the business. Then years later In 1999 ( almost 20 years later), fracking technology was perfected by the largest multinationals. It was not his incredible skills as an oil explorer or producer that got him rich. He got rich because he wisely saw the fact that his previously near worthless investments in oil leases had suddenly suddenly became a goldmine. His lemons had unexpectedly became incredibly valuable. The multinationals bought up his leases at  astronomical profits for him. He was lucky to have leases in the right areas that fracking could be done in successfully. He was wise to sell the leases to the companies with the knowledge and finances required to frack. He had zero risk and made huge sums of money. He got his money and had little risk or exposure to downturns. He wisely sold at the peak time, and became incredibly wealthy. His risks are now of his sporting franchises losing value from his original investment in them and not having sufficient short term reserves to allow him to weather any financial downturns, and being foerced to sell them at a loss. Not from the downturn in the fracking business.

Edited by simpleman

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6 minutes ago, SlimShady'sSpaceForce said:

From the Title alone -  why is this on the main board?? 

 

More importantly, why does anyone not understand that the Pegs are no longer fracking-heavy?

 

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fracking is illegal in NY state but natural gas fracked from Penn is sent to NY so kind of hypocritical ?

further fracking has caused several (hundred) small to moderate earthquakes in places like OK where they pump water into the displaced earth

the pegulas tightening their belts to keep each business cash-flow positive and not have to dip into their savings which would alter lifestyle such as pending new yacht purchase

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3 hours ago, Utah John said:

I hope it's true that the Pegulas are loaded, and aren't at risk if the fracking industry tanks.

 

But there's some reason they slashed staff.  If it isn't money, is it that they just threw up their hands and figured, let's start over?  Or, hey, we've been losing after we spent a lot of money, so let's try not spending and see what happens.

 

Given how bad the Sabres have been for the past 9 seasons, starting over might be a good idea.

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22 hours ago, eball said:

They're going to sell the Sabres.  Just watch.

 

With the Sabres goes the 716 and Harbour Center.

 

Who in the hell will want to buy all that?

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7 minutes ago, Doc said:

 

Given how bad the Sabres have been for the past 9 seasons, starting over might be a good idea.

Wait a minute...the Sabres are still a thing? They stopped being a professional hockey team years ago!

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2 hours ago, Jaraxxus said:

 

More importantly, why does anyone not understand that the Pegs are no longer fracking-heavy?

 

 

They sold the majority of their fracking business in 2014.  

 

But lets not let the facts interfere in the discussion.  ;)  ;)  :LOL: :LOL: 

 

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