RE:RE:RE:RE:Get out while you still have $ leftVladimirPutin wrote: Yes I do know CPG but you tell me how they are going to have trouble? I'd like to see the bear case saying they don't survive.
How about BNK, how much they got hedged? Oh yah and that Albania problem, shucks what a bummer. BNK is dead money and now Brent trades at a discount. What do you think BNK will get if they try to capitalize with paper? next to nothing but massive dilution, yikes...
CPG - 50% hedging strategy at $81.29/bbl, hedges rolling into 2016 and 2017 that can be rolled forward. Much better deposits and more stable governement. Funding Capex from cash flow. Dividend maintainable at above $34/bbl. What has BNK given shareholders other than a headache and losses. CPG is a winner and BNK is a have not in this great oil story.
Sell the trash and buy the best - CPG!
When you say the CPG dividend is sustainable at $34 WTI, that's not really correct. The dividend costs the company about 600 million a year. The company needs another 1 billion to maintain production. So they need 1.6 billion to maintain the dividend and maintain production. In Q3 WTI averaged $46, but CPG had about 50 million in negative cash flow without the hedge. So they need substantially more than $46 WTI to maintain that dividend.