GREY:AVNDF - Post by User
Post by
LTOWNERon Jan 04, 2012 10:51am
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Post# 19368569
Strong Q4- Strong '12 Development
Strong Q4- Strong '12 Development AvenEx should trade at least around the $6.50 level. It is a high yield (10%), moderate growth story, with a strong balance sheet, debt to cash flow just over 1:1 and a 60% payout ratio.
Q3 and 9 mo. revenues and cash flows in 2011 were excellent. Q4 should be strong, with high oil prices and production strength continuing after their Great Plains acquisition one year ago. The Elbow River Marketing Group (butane, ethanol, propane & crude) provided $4.2 million in funds vs.$ 2 million last year, in Q3 '11, normally a seasonally weak quarter. Q4 is the seasonally strongest quarter for this group. The Company said development was expected to accelerate in Q1 of 2012.