RE: RE: RE: RE: RE: RE: Inergy pays $725M for NG smangokid
Volumes at AECO % of 2010 Forecast Price Futures Market Type of Contract (GJ/d) Production ($/GJ) ($/GJ) Term
Financial 85,000 7.50 November 2010 – March 2011
Physical 10,000 7.75 November 2010 – March 2011
Period Total 95,000 49 7.53 4.14 November 2010 – March 2011
Financial 47,500 24 5.21 4.13 April – October 2011
Financial 37,500 19 5.33 4.75 November 2011 – March 2012
I should have elaborated more on my hedging point. The idea is that after 2011, even with those hedges, cash flow will take a bigger hit than the one we saw in Q2, how sustainable will the dividend be?
If nat gas price weakness persists through the winter, PMT will have no choice but to cut the dividend royally and way before march of 2011.
That's in my opinion of course.