Slide 6 of the December presentation outlines cash flow sensitivities for 2014 guidance, with recent moves in CDN$, reduced spread against WTI, level of WTI, and nat gas prices, it is obvious that the company is facing a nice start to the year's cash flow:
Cash Flow Sensitivities:
Edmonton Light – US $5.00/bbl...........$4.2 million
AECO Gas - $0.50/mcf ......................$1.1 million.
Oil Production – 200 bbls/d.................$5.2 million
Base expectations supporting guidance to $77 million cash flow are:
Edmonton light @ $92.5CDN based on $93US WTI @ .93cents exchange
Compares to Net Energy Sweet forward strip at Dailyoilbulletin of $91.41US or $102.92 CDN.
AECO Gas @$3.68/MMF
Compares to AECO $4.50 at Dailyoilbulletin
So the company cash flow is potentially running at ($102.92-$92.50)/$5*$4.2 million plus ($4.5-3.68)/$.50*$1.1 million....totals $10.6 million above $77 million guided assuming production as planned and current commodity prices/spreads/exchange remains the same.
If things do stay the same we will start to see updates on pricing books and guidance expectations and perhaps some additional drilling.
Terr