GREY:WFREF - Post by User
Comment by
JohnJBondon Nov 06, 2014 11:56pm
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Post# 23105264
RE:bought more today at 2.82
RE:bought more today at 2.82When calculating the debt to cash flow ratio, its important to understand what you are doing.
I prefer to compare apples with apples.
For example, compare today's debt, with today's annualized cash flow. Its a mistake to compare today's debt with last years cash flow.
For example, net debt (all debt) on Sept 30 was $718,981 million
Q3 cash flow was 80,199 million (keep in mind this does not include three months of Crocotta asset production. That means 2.24 x cash flow.
Q4 average production is forecast at 37,400 boe
Net backs are $25
That means about $84 million in cash flow for Q4, or 2.13X debt to cash flow (if debt stays the same).
All of which means we are a bit over 2x debt to cash flow presently.
Or about average.