GREY:CNKEF - Post by User
Post by
Don2018on Nov 07, 2019 10:08pm
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Post# 30325045
Q3 report out
Q3 report outand it is about as ugly as it could get.
Still losing money on every boe produced.
Debt has risen to $7 million and counting.
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"We are not in compliance with our lender’s net debt to cash flow financial covenant"
"We are also not in compliance with the minimum hedging requirement"
"We anticipate our lender to reduce the $10 million availability of our demand credit facility"
"Because this financial covenant is calculated on a trailing 12 months basis, the effect of these previous production restrictions are punitive in its calculation over the next forecasted eight months and outweigh the effect from expected higher pricing."
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While increased gas prices this quarter will help, and the tolling agreement on the Aitkin pipeline will add some desperately needed cash "sometime" in 2020, it still ain't gonna be pretty.