GREY:DPGYF - Post by User
Post by
jerrybeon May 09, 2015 9:54am
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Post# 23711208
DEE less exciting than others
DEE less exciting than othersDEE is in complete "survival" mode. I am not implying they are in trouble. They can weather this storm with their current management, assets and well performance.
They plan on drilling only 5-6 wells this year, mostly infills to guarantee hits. It makes sense but I do not expect reserves to move up much this year. Debt will still remain at about 3x cash flows, which is comparatively high, but at least they are living within operational cash flows.
Unless they have a step change in well output or takeover talks emerge, I do not see much excitement here.
If you want to play the LNG BC approval card, much better off with CR, PPY or AAV in my mind. But I am still holding. I think these firms will be taken out by bigger players one by one in the years to come. No rush to sell here but would not be in a rush to buy either.
GLTA!