Lightstream Resources Ltd. LSTMF

RE:RE:RE:RE:Bnn

[tcelling]

Al42 wrote: The Nutter's curse... Both BNP and LTS that he said he wouldn't own because dept to cash flow was higher than 2X have been selling off. BNP now down 1% after being up all morning and now
LTS probably going into the red after being green all morning.
He said at $80 oil LTS would have a POR of 150% and Debt to CF of 4.3X.
Sited the Macquarie report from last week.

How does he figure 4.3x? This woud require a cash flow of <$350M! I can't get any calculation, no matter how bearish to come up with that number at $80 WTI. Currently, using the low end of guidance of 36,500boe/d and IGNORING the fact that the exchange rate is in LTS's favour and that Canadian oil differential has shrunk, I would arrive at a cash flow of $450M or 3.3x. Not good, but certainly not 4.3x. Furthermore, when you add in the decreased differential and better exchange we get numbers <3x.

I'd love to hear the math on this one. Perhaps he was looking at numbers from $60 oil?