RE:RE:RE:RE:RE:Divi Cut Again?Highrider, I took the number from my notes. I believe it was in the latest presentation. But I'm not 100%, I know it was not from a bullboard or anything like that. I'm sure I'll run across it again.
I'm trying to figure out how BTE comes up with their enterprise value and none of the numbers are working for me? Specific to the .50:1 covenant.
i agree BTE will initially see more funds flow from Eagleford as they should receive WTI pricing and lower transport costs. But the decline rates are horrendous and they are seeing a rather large drop in second year production now as well. With the high cost of drilling and large declines, let's hope they have a few sweet spots! In any case BTE has all the models and a good idea of where to apply capital for the highest ROC.
The management team is good so in the end that's the best we can hope for as no one knows where and when the dust will settle.
BTW I'm holding my recent purchases even though down significantly as I believe BTE,CPG,WCP, VET,HSE and others will make it through this mess and become even stronger! Call me stupid but I just haven't seen anything yet that convinces me the world is awash in oil.
What I do know is that most of the cheap oil is already found.
Having said that we don't know what it costs the Saudis to produce a barrell of oil or how much of the stuff they really have. Plus there is a lot of capacity in the other Gulf States as evidenced by all those free flowing wells we saw on fire during the gulf war.
My Christmas wish is that Canadians would band together and get our oil and gas to port!
highrider1 wrote: " Jmarks1 " .... could you please copy and paste from where you saw this. I have not seen this but am currently looking.
It is always much better to copy and paste to support what you say.
TIA.
Jmarks1 - (12/11/2014 8:38:59 PM) RE:RE:RE:Divi Cut Again? gashole wrote: Really,? cash flow positive? I was reading they were going to have a negative cash flow position of something like 280 to 350 million based on $60 oil... after dividend of course. Was this just my imagination or did anyone else read this? I will have to go look again for the report.
You are correct, planned negative cash flow after divy cut is ~260 million for the year.
Hence they are bumping up against covenants.
Sure borrow more money (like someone hear keeps mentioning) and they will break the covenants and have no choices.
IMO buying Aurora was a bad move and put them in a finacial pickle.
Having said that their book value is quite low, so the banks are going to bend over backwards to ensure BTE stays alive to pay off their debt.