GREY:DPGYF - Post by User
Comment by
jerrybeon Jul 23, 2015 10:22am
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Post# 23952337
RE:Back to a buck!
RE:Back to a buck!They loaded up on debt in a very different environment two years ago. Now, they suffer massively from this downdraft...they are suffering but they will not die from it. This deal completion gives them a bit of breathing room. Getting rid of Hythe would help also but they won't get much for it in this environment.
I think PPY and CR are much more exciting (and safer) plays at this point in time if you want to play in the Montney.
Only significant repricing is if: 1. They get taken over (probability: low) or 2. NG gets repriced (probability: low)
So in all, I do not expect much upside for at least a year, if not more. Some upside can come from good well performance, they started their drilling program again. However, 1. They are drilling in their proved reserve right next to existing wells. So it is safe and that makes sense but they will not be able to book higher reserves as a consequence and 2. it is annoying to see them getting hit by 3rd party line constraints on their takeout capacity. That is like shooting an injured duck...
Ultimately, management is acting responsibly in the face of this tough environment. If you bought any oil and gas stock before September last year, you were also not aware of what was going to happen to oil and gas prices. Tough it out or sell. GLTA!