RE:RE:RE:InterestingCPG has $4 billion in debt. It needs $65 WTI and normalized differentials in order to pay debt, sustain production, and pay the dividend.
At $45 WTI, it is losing hundreds of millions a year. It can only cut costs so much. The dividend can be slashed, more people can be laid off, but we're still talking about huge losses.
Capital markets are closed. Equity raises will severely dilute existing shareholders, who are already suffering with a 95% loss.
Nobody has money to buy any of CPG's "non-core" assets either.
How is bankruptcy for CPG (and most of the oil patch in Canada) not inevitable if oil prices remain where they are (or stay within a $25 - $55 range) for a couple years?
Management would be fine, they own almost no stock and they will still be getting paid their salaries and bonuses. It is shareholders that will be wiped out.