RE: Unbelievable!That number may be more like 2-2.5 times cash flow based on todays reality.
The last VRO presentation in Dec. had 2009 projected cash flow at 90 mil. That was based on 7.00 gas and 70.00 oil. Cash flow is probably more like 40-50 mil on todays prices. And debt has risen to 90 mil.
We should be getting an updated presentation soon.
Based on the public reports I dont have a handle on what portion of VRO 's production is hedged into 2009 and at what price. Does anyone have input?
Lets hope these guys are managing their capex very carefully and are using some funds to methodically pay down debt. We are caught in a bad situation where Vero needs financing to grow its business and the Market looks negatively at debt financing. .