RE:RE:From today's G&M They are all conservative in the estimates now. The research also came out before the price rise. The price increase plus 13 cent dividend is a decent total return.
the whole point is that they dont need higher gas prices now with a bit more liquids. Now they can fully operate with lower prices and still pay the dividend.
The debt doesnt matter that much. If they borrowed the whole purchase price the assets cover interest at almost 4X on their own. If they were concerned they would have termed it out over 5 years.
I am guessing they borrowed around 60 million. Just under 2 million per month amortizing the debt over 3 years.
With the new assets generating 3.25 million per month.
that would leave them operating capital of about 20 million plus free cash flow. I bet its paid off early in March 2025. Either way, this will look like a different company again in 6 months once we have the full fall and winter heating season behind with seasonal prices.