While all eyes are on the oil price, wishing for a reversal; I see few people commenting on the debt. There is a huge amount of toxic debt in this sector - it will become exposed when the hedges terminate in 2016 and the reserves get recalculated. Best case scenario will be an orderly recap (read : dilution). Worst case will be a sub-prime type debt crisis.
AOK is well placed in this regard - one of the few with net cash in the bank, and net +ve cash flow (as long as they are not drilling). I doubt it will escape unscathed but will (relatively) fare better than most US based oilers.
But better yet to stay out and re-enter when the dust settles. IMHO.
AOK Price at posting:
4.1¢ Sentiment: Sell Disclosure: Not Held