GREY:WFREF - Post by User
Post by
VentureCapital3on Jan 29, 2015 4:46pm
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Post# 23379326
Based on numbers provided by LRE in the last presentation
Based on numbers provided by LRE in the last presentationAssuming for 2015 WTI = $70, Gas = $3.65 and CAD/USD of 1.145, LRE should realyse $205M of operating cash flow. To acheive this LRE has to spend $165M in CAPEX. LRE debt can not be over 3X CF to respect debt conditions. LRE debt is arround $700M. The sensitivities are: for delta $1 WTI = $3.6M, for delta $0.1 gas = $3M and for delta $0.01 on forex it is $3M (when WTI and gas are at $70 and $3.65 when it is lower the impact of forex is also lower...). At the current prices there is a problem for sure. It could be managed, but there is a problem and a big one. I can't imagine LRE keeping the dividend if oil doen't move up by February. The only reserve I have it about the hedging. For me when LRE says WTI they are not including the hedging. If the hedging is included, htey shoud talk about realysed price not WTI.