RE: RE: RE: Only way is up! He certainly is not me.
I have no idea why he copied that post from IV.
Watch for a potential catalyst surrounding Lone Pine attempting to resolve its bank covenents before the end of June. Its slave point assets in Evi butt Pinecrest's and may be for sale or part of a JV. Either way, if something happens, it will put some valuation metrics on the table.
This is from Moody's downgrade of Lone Pine debt:
The SGL-4 Speculative Grade Liquidity rating reflects weak liquidity. As of May 3, 2013 Lone Pine had minimal cash and approximately C$165 million drawn under its C$185 million borrowing base revolver, which matures in March 2016. Lone Pine cannot make further drawings under the revolver as doing so will breach the sole financial covenant governing the facility. The revolver's borrowing base could be subject to downward revision in 2013 as production and reserves decline or if Lone Pine sells assets. We expect Lone Pine to breach its revolver financial covenant (total debt to consolidated EBITDA of 4.5:1 on March 31, 2013 decreasing to 4:1 on June 30, 2013) on June 30, 2013, absent renegotiation of this covenant. There are no debt maturities until 2017. Lone Pine may be able to generate some cash from the sale of all or part of its core assets - Narraway or Evi, but the proceeds would likely go directly to the secured banks and not have a positive impact on liquidity as the company's borrowing base would be reduced.
Terr