Painted Pony Pete Ltd PDPYF

Energy

"Painted Pony Energy Ltd Petroleum explores, develops, and produces petroleum and natural gas. The company focuses on the development of natural gas and natural gas liquids. The company's operations take place near the Montney formation in Northeast British Columbia. The Montney location is a sweet natural gas-saturated zone (natural gas that does not contain hydrogen sulfide or significant quantities of carbon dioxide) with no associated or underlying water. The company also has multiple gas pr

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Painted Pony Pete Ltd > Pony Net Debt Misleading?

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Comment by Sadie222on Jun 20, 2019 8:02pm

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Post# 29847170

RE:RE:RE:Pony Net Debt Misleading?

It’s a commitment to pay a certain amount over a certain period of time for processing facilities. Depending on the lease terms, they may be able to sub-lease part or all of the facilities if they wanted to for the balance of the term. Until the term expires, the payments are expensed like a car. Premature termination may have a penalty attached, but assuming everything is proceeding smoothly it’s not relevant. Only the monthly payment is due. The lessor can’t cancel the lease and expect to collect all future payments.
The fine print, of course, rules and I’m not an accountant, but people lease cars and trucks for a reason.