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Opinion
Matt Levine

Oil Company Finds Gusher in Bond Indenture

Some edits to Forest Oil's merger press release were worth more to its equity value than, you know, its oil wells and stuff.
Updated on

Here's a graph of Forest Oil Corp.'s stock price:

Bad, right? With about 119 million shares outstanding and a closing price yesterday of $0.3415, that's about a $40 million market cap, down more than 90 percent year to date. That's not a huge surprise, I suppose; Forest is an East Texas oil and gas producer that agreed in May to merge with Sabine Oil & Gas, another East Texas oil and gas company. Recent months have not been kind to independent oil and gas companies.