GREY:VFGGF - Post by User
Post by
tulsateaon Jun 20, 2013 8:36am
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Post# 21546816
LPR
LPR
| Way too much debt and way too much natural gas and too little cash flow have led LPR into a death spiral from which it is impossible to recover. Their one good feature is their Greater Red Earth oil asset but it cannot carry the entire company. The financial structure of LPR is smothering the company. Pinecrest is a different animal in that it produces almost entirely oil and has a sound financial structure. To give an idea of the problems that LPR faces, I have copied a Standard & Poors credit analysis below. We are lowering our long-term corporate credit rating on Lone Pine Resources Canada Ltd. to 'B-' from 'B'. We are also lowering our issue-level rating on Lone Pine's senior unsecured notes to 'CCC' from 'CCC+'. The '6' recovery rating on the notes is unchanged. We are removing the ratings from CreditWatch, where they were placed with negative implications Dec. 7, 2012. We believe Lone Pine's business risk profile will continue to weaken and the company will be challenged to continue exploiting its resource base, which have underperformed significantly. We base the negative outlook on the assumption that Lone Pine's debt-to-EBITDAX ratio will continue to decline due to persistently weak cash flow generation, and there will be limited headroom in 2013 | | | | | Brief Excerpt: | RESEARCH Ratings Definitions PDF Lone Pine Resources Canada Ltd. Rating To 'B-'; Senior Unsecured Note Rating Lowered To '###'; Ratings Off Watch Publication date: 01-Mar-2013 Primary Credit Analyst: Aniki Saha-Yannopoulos, CFA,... | | | |
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