OTCPK:VGIPF - Post by User
Post by
Indicatoron Oct 30, 2012 11:22am
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Post# 20539219
Dividend sustainability
Dividend sustainability This thing looks like a steady eddy cash cow - you don't get bought deal financing unless they like what they see!
Renegade has entered into a bought deal financing with a syndicate of underwriters co-led by GMP, TD, Dundee and Macquarie (the "Underwriters")
Renegade believes Pro Forma Renegade's cash flow and dividend payments will be both predictable and sustainable going forward.
The dividend, on an annualized basis, would require $46.6 million or 34.8% of Pro Forma Renegade's estimated 2013 cash flow of approximately $134.0 million (assuming 2013 average realized pricing of CDN $81.50/boe) based on estimated average 2013 production of 8,041 boe/d. Renegade anticipates allocating approximately $79.2 million to capital expenditures while retaining approximately $8.2 million of cash flow to pay down debt, increase the dividend and/or accelerate production growth.