Dec Slide DeckA few takeaways from their new slide deck:
- They are just now "Right-Sizing" their transportation committments (on slide 10) which means they previously had too much capacity and firm-service.
- "Reducing Expenses" (Slide 11) means they were spending too much on OPEX, T service, G&A and interest costs.
- No mention of the Lloyd heavy oil ops. Unknown current value there.
The FDC against the corporate reserves from their
2019 reserve report (page 14 of 2019 AIF) was:
For Proven: $76MM (2020), $139MM (2021), $191MM (2022)
For P&P: $80MM (2020), $150MM (2021), $221MM (2022)
They have to spend significant capital in 2021 or risk a reserve adjustment. Will likely have to wait until March 2021 to see how the go-forward FDC has been re-allocated. They plan to launch 5-7 wells from 2-3 pads in 2021 ($5.7MM/well) so it adds up fast.