GREY:SGLRF - Post by User
Comment by
qwqwon Jul 04, 2013 1:44pm
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Post# 21589227
RE:Article Posted at "Beating the Index"
RE:Article Posted at "Beating the Index"
"Based on available information at this point we can only ASSUME that the entire "Cash Flow Netback" is available for dividends and anything left over is basically gravey."
Anything leftover after dividends is needed for drilling.Most companies use the entire cash flow netback
for drilling and still have trouble maintaining production (aka Pace).Pace used all their cash flow and borrowed another $70 mil over the last 2 years and production still dropped.
The $6.46 cash flow netback for Q1 is mostly for Pace since the arrangement occurred on March 28th.
That leaves the Pro forma $19.8 mil ($13 boe) operating netback as the only number with some value going forward.Subtract $3 boe for G&A and $2.50 boe for interest leaves $7.50 boe cash flow netback.