RE:RE:2016 ROCE and P1-P2 Reserve Growthfellowship wrote: You will get improved ROCE soon as the Canadian assest are being taken in consideration and you will be changing your mind rapidly. The shutin reserves will increase the cash flow at current oil plus they will be adding new weells.
This is exactly what the problem is, this shut in capacity will not come back online until prices improve and the later it takes the closer to debt repayment or renoegotiation the more difficult it will be for this company to thrive. Nothing unique here excpet the fact that this performance is compared to all other mid tier producers who are operating in the same environment but are performing much better. This combined with thier huge d/cf ( the highest in the pier group) will slow thier advance in rising prices becuase debt window is closing . If oil was $80.00 we would not be having this discussion but it's not and the longer it drage down here the worse it looks for this companies ability to stay solvent.
Why would anyone want to take a chance in this space with lousy metrics, dim future,huge debt when there are so many other companies that are doing much better and paying a dividend. Everyone is looking to the future in oil but the cloud here is too dark