Regal Partners Ltd V.RPL

Renegade is far from finished, despite recent naysayers' predictions.

[Bean_and_Dunn]

The debt was too high. They sold a property for $19 million on July 11, 2013.
The debt was too high. They cut their dividend by $26.4 million per year for each and every year going forward. (That's $6.6 M per quarter.)

They disposed of 2 properties and did not fare well on those sales. On balance they lost $2.0 million, but the $13.2 million proceeds could now be used to explore and develop resources or pay down term debt which stood at $278 million at July 30th 2013.

Re: Earnings for the 6 months period showed a loss of $3,575. This looks poorly at first sight but it is mainly the result of realized and unrealized losses on derivative contracts. These subtract from earnings, but boost funds from operations and guarantee that the company will have a certain level of money coming in the door. As time moves along the forward contracts will reflect the new pricing of contracts. The situation is not as bad as is being portrayed by the naysayers. 


Equity was $487 M at Dec 31 2012 versus $459 M at June 30 2013 a drop of $28 M.

Total liabilities were $406 at Dec 31 2012 versus $408 at June 30 2013 and increase of $2

Equity per share of $459 / 203 = $2.26 per share

Whenever you can buy assets for less than 48% of book value you are probably looking at a reasonable puchase where you will make money. 
 
Production has dropped off. This was a very wet spring. what do you expect, a miracle? Production will increase once again in the next 3 quarters.

Fundsflow from operations for 6 months was $47 M this is enough to fund exploration and development of $37 M and still leave $10 M for dividends.

The price of oil is up significantly from early this year, when it was priced in the middle to low $90's
Even $10 per barrel adds up over time. At 7,111 per day times $10 per barrel equals $6.4 M for the quarter. 

Hang in there. Things are not as dire as some people would like to have you think they are.

BD