Lightstream Resources Ltd. LSTMF

RE:Cash flows on oil price and exchange rate improvements

[UppersDowners]

the numbers are a lot better but the debt is out of this world. If LTS was a good deal smart money would not have left. One day we will turn on our computers and it will say LTS Chapter 11 as Wright has driven us into the ground. Wright had a deal for the Bakken properties about 18 months ago and said no as he thought it was low ball and now if he could he would jump at the offer. He blew it.

[oilman53]

Using BOE's is misleading as you cannot multiply the BOE by the price of oil.  BOE equivalence for gas is calculated on BTU value ie)  1 Barrel of oil = 6 MCF of gas.  On a value basis that gives you a 48 dollar barrel = to about 12 dollars worht of gas (2 dollars per MCF).  LTS production is getting gassier and thus less valuable.  Their FFO last quaeter was negative

[orlandofl]

I think all of us who were long never thought it would stay down this long. It looks like they could be going bankrupt, but there still is some serious buying - could just be shorts - or it could be that a deal is possible diluting stock since they can issue first debt just behind bank line - I'll wait to see if they get funded then maybe buy over a week or two later - I think there will be

[blade86ca]

Fully Agree, Wright thought he could get CPG to pay more for Bakken even after I remember Saxberg publicy saying at that time they were very interested in LTS assests ( Bakken in paticular ). I am sure at the time Wright must have thought oil prices will be back above 100$ in no time flat and did absolutely nothing ( aside from collect his salary ) to protect LTS balance sheet and lower debt

[orlandofl]

they should have cut the dividend right away and paid on debt - it was around 8 cents a month or so - I can't rember - that could have been $160M a month toward debt - or paid off in a year and they could have survived - dumb. CPG finally cut dividend and I'm glad for it so they can work on paying down debt as they have a lot of debt also - but a lot of production and seems better

[blade86ca]

CPG debt / cash flow is around 2.4x which is high but inline with most of its peers as far as I can see.  Atleast with CPG they are growing production now internally ( as they stated in their latest PR) instead of buying production which means they can keep their debt levels under control and slowly pay that off hopefully. Their total payout ratio now after the cut is approx 84% now which

[orlandofl]

I'd just assume see no dividend right now under these conditions to pay down more debt or even lower dividend, but I'm sure they'll keep it.   Back to LTS - it will be interesting to see what happens mid-June with interest payment due and within about 60 days or so on bank line - if they can get more dollars - it may be tough as the bond investors are not the biggest risk takers.

[SESaskoilguy]

My sources are telling me that CPG has purchased Husky SE Sask properties ..........will be announced in next 30-45 days. Not sure how they funded it but their debt will increase.