I spoke to Matt Janisch (CFO) today, LEG future EXCELLENT! Take comfort people!
After speaking with Matt today, I continue to be amazed at the absolutely baseless posts made on this board. This company is PROFITABLE at even sub $60 oil!
Matt stated with confidence the following points:
1) Matt stated that contrary to fears some investors may have, company will continue to EXPAND GROWTH even in this low oil price environment - albeit at a slower pace then before in the near term and that there will be little or no change to the direction of the companies strategies. Yes you heard that correctly EXPAND GROWTH going forward in 2015! He and LEG management take the same view that most market analysts are taking namely that oil prices will return to somewhere north of $80/ barrel in 2015.
2) He said with DEFINITY that debt is NOT an issue!
In his discussions with 'the banks' there is NO concern by them AT ALL at this time, because they take a much longer view of company developments that do NOT regard day by day or periotic fluctuations in oil price significant over the long term - no matter how severe, because they (the banks) take a similar view that the projected average oil price will utimately return to somewhere in the range of $80 - $90 a barrel WTI.
3) They are preparing their budget for 2015 operations now to be released in an NR in 3 weeks from now which will map out their plans for continued GROWTH!
4) The fundamentals are essentially unchanged and the balance sheet with still HEALTHY cash flows remains in tact going forward even through this period of low oil prices. He asserted that investors should be able to reach this conclusion on their own by reviewing the information that is publicly available.
(I do think that they should reiterate this point in an NR and summarize the salient points for investors to take assurance from through this psychologically difficult time - made no easier by the incredible BULLS@$# and negativeNOISE from the basher/shorters on this site! I intend to suggest that specifically when next I speak with him).
5) When I suggested that managment should issue a statement regarding this severe downturn in share price Matt said that LEG management takes the view that it is unwise to issue an NR in times of market mishaps that occur because of external market forces OUTSIDE and through NO FAULT of the company nor related to company activities ... because people will constantly expect an NR on an ongoing basis every time there is bad news (which is ridiculous) and if there was no NR people would just interpret that as something negative happening within the company - which is NOT the case at LEG!
In summary, Matt told me essentially what I already knew - except happily about his statement the company is set to CONTINUE GROWTH in the near term! I love this!
So as most longs already know, we just have to be patient through this blip in oil prices - granted it's a big blip - and stay the course that has obviously being working so incredibly well for LEG before the recent descent of the price of oil.
I am encouraged and satisfied that everything will be fine and the company will continue to grow and build upon its many excellent acheivements to date going forward.
BTR