RMP ENERGY INC T.RMP

RMP and the debt overhang...

[perdikaoilgas]

Excluding the overly high decline rate of 46% as mentioned in my previous post, I'm really curious to see how RMP can handle its severe debt problem. Dilution? Asset sales? Both?

RMP is one of the most indebted Montney producers, and this is another significant headwind that will affect negatively its negotiating power during this strategic review process. 

I know that some RMP bulls will shoot the messenger as always, but I just mention facts from NBZ's presentation and RMP's reports. Just my 2 cents.

[RTPisinyoface]

"most indebted Montney producer?". Based on Q2 results RMP was 3.5x D/CF. Now, to prove you are not a complete waste of skin, maybe you can enlighten me to the Q2 16 D/CF ratios of BIR, CR, CQE, DEE, KEL? I don't want to spoil the surprise, but there were many Montney producers with cash flow issues in Q2. Prices have improved drastically since then and I expect huge improvements in

[Jonesing]

Why tomorrow or Tuesday? According to tsx q3 will be on the 10th of November.

[RTPisinyoface]

Maybe just wishful thinking, but as an owner in this company I sure would like to know how they plan to proceed with the bank line being rolled back to $100MM as of tomorrow!! I assume either they have paid down debt to under the $100MM threshold or National is going to push the rollback date to allow for a resolution to strategic alternatives. I cant imagine having Oct 31st come and go with no

[ditchdigger251]

Here, here!  I second RTP's motion.  RMP should have much stronger cashflow now that should improve lender support.  I doubt the insider buying over the past couple of weeks is wishful thinking.  It's smart investing in a company the insiders no doubt know intimately.  I can see RMP establishing significant Montney cashflow from Gold Creek in Q1 from 

[Seppelt]

ditchdigger, First of all, it's a waste of time for you and RTP to comment or argue with posters who often make no sense. One dude all of a sudden wakes up and brings the issue of "high declines and debt" then another writes something about 'insider buying' and 'wishful thinking' ??? The thing is, RMP may issue a PR tomorrow and my wishful thinking is its a takeover

[ditchdigger251]

Maybe, maybe not.  RMP's Gold Creek land is located in less mature rock further east into the oil window.  The cleanup period on the 3-22 well was limited - Hz liquids rich Montney wells that cleanup much longer - say over a month often show significantly higher LGR's in the production with those higher LGR's remaining somewhat stable.  But even if free liquids

[Seppelt]

OK. Here is another scenario. Sell the minority stake in Pine Creek to its operator, Peyto. Sell other assets, Gilby and Big Muddy. Combined with better cash flow in Q3 that should resolve the $100 mil. credit limit. Then, drill here or there to maintain lands and production and hope for higher oil and gas prices... Yes, it's possible but I'd rather see a transaction. Lets hope we'll

[ditchdigger251]

Definitely a possible scenario.  There's larger Monteney hungry operators looking for great liquids rich assets.  My earlier replies point out that RMP doesn't have to look in the gutters for a deal.  They should be able to get things moving in their favour.  If they get taken out I believe it will be for a multiple of their current sp.