Twin Butte Energy Ltd TBTEF

Debt vs Equity

[bshort92]

Only two ways to fund capex if cash flow is negligible. Take on debt via borrowing or issue equity. Take the releases this week of LEG, WCP and PXX. All announced dramatic increases to their credit facilities. All three liquids oriented players needing additional capital to increase production. CR announced a reaffirmation of their $430 million line now close to being maxed out at $399 million. PXX and CR drill near TBE's heavy oil core. You watch what the competition is doing. Conclusion: taking on debt is a favored option right now. TBE's debt seems to be under control, in fact is getting reduced. Sounds good amid the opposite goings on amongst industry peers. So what's up next?