Post by
Spilleren on Dec 17, 2014 6:38am
Capex
If this company can reduce capex by 53% of their previously planned spending and still maintain 2015 production at the Q3 2014 level, they should not have any problems getting through this. As long as natural gas prices hold up where they have 35% hedged at $4.00 for 2015, the savings in capex is like adding on $42 dollars CA to whatever price you use to the unhedged oil. This based on the averaged hedged portion of 25% for all of 2015 although they are hedged 50% for Q1. Given the state of the Canadian dollar that works out to $105 CA. In addition to this there is the 40 million saving by reducing the dividend which works out to an across the board saving of $3 boe on 35,000 b/d. I am new to this company so maybe I am missing something but it looks to me that the company should be fine.
Comment by
VentureCapital3 on Dec 17, 2014 7:44am
Most of us agree with you. I don't think you missed something. GLTA
Comment by
Spilleren on Dec 17, 2014 8:00am
In addition to the excellent prospects of weathering the the storm what strikes me as interesting in the extremely low stock price based on equity, the huge tax pool the company has which is worth close to $2 a share and the complete lack of insider trading for over 3 months. One has to wonder if there isn't something brewing.