GREY:WFREF - Post by User
Comment by
johnathamiltonon Dec 05, 2014 6:03am
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Post# 23198335
RE:RE:Cost per barrel
RE:RE:Cost per barrel
@Sumcan - I did a back of the envelope analysis and based on USD65/barrel oil and USD3.5 NG -& at an 88 cent CAD I get close to break even cash flow. (This is substantially conservative)
What's saving LRE managements hides are:
1) Hedging
2) CAD-US Exchange rates.
In order to prosper in this market they will either need to reduce CAPEX (which I don't think is healthy long term), reduce Operating Costs - which means tightening their belts on SG&A - which I do think is healthy and/or 3) Reduce or eliminate the dividend.