Twin Butte Energy Ltd TBTEF

RE: RE: RE: RE: Who is next??

[bshort92]

Candidly I don't think TBE is going to make any more acquisitions in the next Q or two. The Q3 earnings report was terrific. $38.1 million in cash flow annualized (X4) that is $152.4 million on 13,752 boe's/d production dealing with a $146 million debt load and paying out a .015 monthly dividend. Making accretive acquisitions was huge but they are now in a conservative mode to fully assimilate the purchased 2012 assets (Swimming, Avalon, Waseca and Wildmere) while at the same time dealing with lower oil prices, wider differentials caused by pipeline and refinery snafu's,adapting to shipping product by rail and paying down that $212 million debt load (already paid it down by over $11 million last Q!). Balance sheet discipline is really critical citing an increase to .016 on the dividend and naviagting lower oil prices. That is why TBE announced a conservative $158 million cash flow for 2013 or $39.5 per Q an increase of just $1.4 million per Q or annualized just a slight bump of $5.6 million despite daily production set to go from 13,750 to19,000-19,500 boe/d. They have a full slate and over promising would be bad business. There long time VP of land retired. No replacement named...probably don't need one citing the massive accumulation of 700 plus drilling locations so its a mode of being a smart, conservative operator that manages the balance sheet, protects the dividend and does not over commit. Don't be stupid and take on too much debt or over promise investors what you can't deliver. So OK the shares can't bust through $3 a share. So what. They run the company, grow the production and manage the capital. They don't manage the share price. Stay tuned.