OTCPK:PDPYF - Post by User
Comment by
jerrybeon Feb 22, 2017 10:43am
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Post# 25876947
RE:RE:RE:Did one of the banks unload or something?
RE:RE:RE:Did one of the banks unload or something? Especially when they talk about CURRENT and FUTURE production.
This is a firm that is changing its production profile like almost no other firm out there. Yes, it is ramping up debt to do so but the additional production (and the added liquid production) will improve dramatically the production costs per mcf. All the metrics will improve dramatically, as it did with Peyto and AAV when they went through disciplined rapid growth phases.
Because they do not own their facilities (Altagas partnership), they will never have quite the same margins. But when you are a small player, you have to realize your limitations and the balance sheet would look much worse if they had gone about it alone. Look at DEE (Delphi), that's what they tried to do and they had to throw in the towel last fall and partner with fresh equity to seriously develop all their land.
I think PPY has done everything right. Of course their local pricing sucks (Station 2) but when (not if) BC exports gas to Asia, they will be truly profitable. It is still years out unfortunately but we will get there. And the stock, if not taken out before, will be north of $20...