Long Run Explor Ltd Ord WFREF

RE:Based on numbers provided by LRE in the last presentation

[tvstock]

Note that is EBITDA that counts, so you have to add back the 7.5M  interest expense (anualized 30M) and 24M tax in last 9 months (annualized 32M) to  the  funds flows number to get the approximate EBITDA.

Convertibles are not counted in the covenant ratio,  so net debt is 632M

If curent conditions persist for the whole year,  yes it is a problem. It is a problem for virtually all E&Ps, not only this one. But it is far from bankruptcy. 


Also , If current pricing persist, I would say a 70cent cdn to 1US is highly likely.  That alone solves the problem.
Otherwise my number crunching says that  average WTI  56 for the whole year will do it.  Not a high expectation indeed.

Plus, convenants will be not breached for 3 more quarters. I can show you my detailed guess works if you like.



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Of course I can be wrong...all corrections welcome.