GREY:SGLRF - Post by User
Post by
BlueCollar51on Jul 06, 2014 12:23pm
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Post# 22719266
The REAL Issues
The REAL Issues - Poor operational performance.
- It’s clear that there are infrastructure problems at Dixonville. It does appear that Spyglass is working with the regulator to sort them out. This is the Oil and Gas business and “stuff” does happen.
- What I find to be more of a concern is that to date Spyglass has consistently not met their guidance re the Capex program. Always one excuse or another (usually the weather). They don’t seem to be capable of planning and executing a Capex program.
- The sustainability of the current dividend. In my opinion a meaningful reduction in the dividend would be beneficial. It would demonstrate to the market that they are serious about maintaining a 100% or less all in POR and improving the balance sheet.
It would give them some room for a poor quarter or two due to a Dixonville type of a problem or weak commodity prices without increasing the debt.
In good quarters it would give them the ability to reduce the debt and or increase the Capex.
As Always; Do Your Own Due Diligence; It’s Your Money !! PS; I have a ½ position in SGY at $1.63