Debt From G&M. Never good being mentioned in the same sentence as Lightstream.
https://www.theglobeandmail.com/globe-investor/inside-the-market/more-capex-dividend-cuts-loom-for-energy-sector-bmo-warns/article23251317/
According to BMO, the companies best positioned in this low-oil-price environment are Raging River Exploration Inc., Cardinal Energy Ltd., Suncor Energy Inc., ARC Resources Ltd., Athabasca Oil Corp., Enerplus Corp., Tourmaline Oil Corp., Journey Energy Inc., and TORC Oil & Gas Ltd.
Firms that have a higher degree of funding risk, according to BMO, include Perpetual Energy Inc., Baytex Energy Corp., Paramount Resources Ltd, and Long Run Exploration Ltd., while Penn West Petroleum Ltd., Lightstream Resources Ltd., Zargon Oil & Gas Ltd. and Twin Butte Energy Ltd. have elevated overall leverage.
“We believe that a modest recovery in oil prices to the $60 [a barrel] level is not enough to restore the financial health of most highly leveraged companies and that the downside risk to crude oil prices could translate to further downside for these equities,” Mr. Dziuba said.
Mr. Dziuba acknowledges that many elements of his analysis are subject to change. Companies could elect to trim their payouts or capital budgets, make greater use of dividend reinvestment plans, refinancing debt, or sell off assets in an attempt to improve their financial positions.
Divesting assets, however, has proven to be quite challenging for many Canadian oil and gas firms.
Penn West Petroleum Ltd., for example, has been trying to sell assets to buffer its balance sheet. Its Peace River oil sands project, a joint venture with China Investment Corp., is one of its assets on the auction block.