GREY:SGLRF - Post by User
Comment by
qwqwon Jul 05, 2013 3:49pm
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Post# 21591643
RE:Article Posted at "Beating the Index"
RE:Article Posted at "Beating the Index"Tris, ever heard of depletion expense.
Cash flow is not the same as earnings,cash flow does not take into consideration what the orginal finding
costs were aka depletion,but earnings do.A company can have good cash flow and still be losing money.The average finding costs are $15 boe,so if the cash flow netbacks are below $15 boe chances are the company is losing money aka investor subsidised enterprise.Now add $5.50 boe for dividends
and Spyglass needs $20 boe cash flow netbacks to maintain production and reserves.
Money for drilling mainly comes from cash flow,but debt,issues,DRIPs,land sales, etc are also used.