Posted June 08, 2018 04:03:59 Rosebuds, a Utah-based oil and gas company, is one of the top five oil and natural gas producers in the United States.
But the company has suffered a massive blow.
The company, which owns and operates oil and minerals operations in Utah, Colorado, New Mexico, and Texas, announced it is shutting down.
The announcement came the same day that the company was fined $30 billion by the U.S. Department of the Interior for a massive oil spill in the Marcellus Shale.
Rosebudes stock plunged to a low of $13.50 on Friday, and its stock has lost over 70% of its value in the past two years.
The spill in 2013 involved a leak in the drilling operation at Rosebuda.
The oil in the drill bit, which was used to drill the well, leaked and polluted the nearby Marcelluas Shale, and the spill has killed thousands of fish.
A recent study estimated that the spill caused more than $20 billion in economic damage to Rosebude.
The price of Rosebuddy stocks has dropped nearly 70% over the past year, and their stock has also fallen by over 50% over that time.
“Rosebuds stock was not an attractive investment to many investors, but now that it is shut down, its stock price is much more volatile and we will continue to see its decline,” Jeff Miller, the CEO of MillerCoors Energy Services, said in a statement.
“The fact that Rosebudi’s stock price dropped by 70% is just another sign that the stock is undervalued by today’s investors.”
The company has been fighting a class-action lawsuit filed by the state of Utah over the spill.
The suit is seeking an unspecified amount in compensation for the victims of the spill and the environmental damage it caused.
“There is a high likelihood that a jury will conclude that the defendants, including the state, failed to protect Rosebuden’s residents from the damage caused by the oil spill and failed to prevent it from happening,” the suit states.
“As a result, Rosebudo will be permanently deprived of its economic benefits as well as the opportunity to receive relief for damages from Rosebuder.”
The lawsuit was filed last month in U.C. Davis, California.
In its filing, the Utah Department of Fish and Wildlife claimed that Rosebos oil spill “will have devastating effects on Rosebuzz’s local economy, jobs and economy.”