Painted Pony Pete Ltd PDPYF

Pony Net Debt Misleading?

[Runaway1492]

I read an article on Seaking Alpha where Pony's net debt is much higher than what they claim in their presentation:

https://seekingalpha.com/article/4270000-painted-pony-discount-despite-strong-q1-results

it states:

But if we take into account the financial lease of the Townsend processing plant and pipelines that represents C$483.4 million, the total net debt reaches C$824.8 million.

This is on top of the 350MM or so in debt Pony claims to have in their financials.

Were any of you guys aware of this?  How can they get away with not publishing this number?

[Don2018]

Because it isn't debt.

[Runaway1492]

The analyst from SA seems to consider it debt.  Could you please explain further?  Is it monies they will have to pay?

[Sadie222]

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

[Runaway1492]

Okay, so this is a lease expense of pipeline and processing facilities the company needs to process their gas and is included as an operational expense prior to determining adjusted fund flow.

[Don2018]

Yes, everyone has to pay for processing one way or another. PONY just does it differently. As for whoever you were reading, I avoid that site, but that is JMO.

[Summon3r]

SA and Motley Fool are a complete joke (like drinking uhh ummm you know uhhh boxed water), read at your own risk

[Tweedlede]

Agreed. Arm chair analysts that deliberately twist words and present cherry picked information to their agenda on those sites. Bulls and Bears alike.

[Runaway1492]

Thanks for the perspective guys.  I'll know to be careful.

[Natgasbc2021]

Same guy pumping PEY look at the destruction there

[Don2018]

I was trying to be nice, but you state the obvious. There is so much misinformation being published that it is difficult to determine what is fact and what is bs.