Decline RatesThe following is from
PARALLEL ENERGY TRUST's presentation page 22 (link below)
https://redir.parallelenergy.ca/images/Presentations/2014/corporate%20presentation%20-%20parallel%20-%20mar2014.pdf
Parallel has extremely low decline rates of 8-10% and low finding costs allowing it to maintain production of 7200 boepd with a measily $15 mil of capex.The average div payer requires 4 X
that amount or $62 mil to accomplish the same??????????
The average Div payer with SGL's production of 15,000 boepd would require
$130 mil of capex to stand still.
How in the world can they maintain production and pay a hefty div?
"Average initial corporate decline rate for dividend paying E&P companies in Canada of 27% as estimated by TD Securities.** Average capital expenditures to replace production of ~$31,900 per flowing
boe/day for dividend paying E&P companies"