NYSEAM:SIF - Post by User
Comment by
ngoweron Apr 17, 2006 2:19pm
177 Views
Post# 10681483
RE: back at ya, ng
RE: back at ya, ngBeck i received a detailed reply from ESIF. The three salient points were
A] my interpretation of their cash flow statement was correct that it shows that they are meeting somewhat over half of their distributable cash flow from operations in Q1 to q3 2005.
They explain that the actual distributable cash is different from the cash flow statement for two reasons.
B] they are required to pay for and put gas in storage with some of the utilities they are servicing. They will then recoup this cash as the gas is consumed and paid for by their clients.
C] Marketing costs. They calculate distributable cash on a pre marketing cost basis...ie. they have incurred the marketing costs but assume that these will generate extra customer contracts.
Prior to making an investment decision on ESIF , I need to think a little about the extra risk i would be incurring because of these two substantial prepaid cash flow reducing items.