Delphi Energy Corp. DPGYF

RE: RE: Re: 6 x Earnings

[ElJ]

You are certainly right about the benefits to Delphi of their current hedging.  Yes the Spot Price at $3.04 AECO and $3.38U.S. Henry Hub(examples) are not helping current share price, but other items also are a drag on DEE share price in our current environment.... .. debt in relative terms is quite substantial compared to my expected revenue for year 2009 of approx. $100million($135.4 Million in year 2008). The company cashflow guidance of $0.50 to $0.54 per share for 2009 includes hedging and I expect that we may be looking at around $0.11 to $0.12 cashflow per fully diluted share in Q2, 2009 results when they are released. Reserves at 15.14 M(proven) and 20.02(P+P) Million boe are very useful at current share price, but many O&G companies out there are doing better that the $20.69 F&D costs/boe reported by Delphi for year 2008. 
I like Delphi but expect that we will have to wait for NG price increase and significantly increased drilling activity to be evident (note: year 2009 Delphi CAPEX budget at $40million compares to $68.3 million in year 2008) before the the marketplace will assign higher price/cashflow multiple,

Peace,
Good Decision-making to All,
ElJ