RE:Debt reduction and conf call BSDon't the warrants have a strike price of $4 we are currently at $2.48 a difference of $1.52 just to get to the exercise price? In 2023 they repaid $152 million in principal.
At any rate their corporate guidance for 2024 said this based on $75 oil:
2024 DEBT REDUCTION PROGRAM
During 2023, Saturn repaid approximately $152 million in principal payments to its senior term loan (the "Senior Term Loan") that had an original principal amount of $608 million owing as at February 28, 2023. Estimated Net Debt(1) at December 31, 2023 is estimated at $463 million. The Company intends that 2024 Free Funds Flow will be directed to further reduce the Senior Term Loan balance for targeted December 31, 2024 Net Debt of between $275 and $290 million. The Company has executed an amendment to its Senior Term Loan agreement, including all applicable covenant waivers, to ensure Saturn is able to fully fund its 2024 capital program. The Senior Term Loan schedule to be repaid in full in Q1 2026 remains unchanged. Principal repayments will be fully funded with organic Free Funds Flow.
High leverage to light oil: with an 80% production weighting to oil and NGLS, each additional US$5/bbl increase in WTI oil prices will add $15 million in additional FFF which would be expected to be allocated to additional debt repayment, thereby accelerating the timeline to be debt-free (currently projected as Q1 2026);