GREY:WFREF - Post by User
Comment by
Reflecton Apr 07, 2015 9:34am
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Post# 23603428
RE:LRE on BNN
RE:LRE on BNN Yes, I did check out Josef Schachter top pick LRE on BNN & it refreshing to hear the presentation of facts to justify his rating of LRE unlike the emotional agenda biased of the banks& other toe the line brokers.
I only wished he would have mentioned how oil price increase exponentially increases LRE’s position &; the positive aspect of the soon to be rising NG prices. Dwelling on the oil slump is exactly that. Look at all the Cdn. Oil companies whose sp prices have fallen & how many have cancelled or reduced their dividends. In Canada, world oil prices are out of our hands.
Long Run Exploration (LRE.TO 0.00%) “Josef Schachter (April 6, 2015) on BNN”
Long Run is a debt levered energy company that produced >31,000boe/d in 2014 with liquids being 43 percent of the total mix. To lower debt in 2015 they will spend only 50 percent of cash flow and use the other $100M of cash flow to pay down against the debt load of $612M at year end 2014. In addition they have a number of asset packages out for sale 6-7,000 boe/d total and if just half sells they should be able to knock debt down by another $100M in 2015. This should then bring exit debt/cash flow below 2x and remove the debt burden worries. Book Value at year end 2014 was $3.70 a share and cash flow in 2015 should be >70 cents per share on average volumes of 32,000 boe/d. Our 12 month stock price target is $3.50 a share. We note that in early 2014 the stock traded above $6 a share.
https://www.bnn.ca/News/2015/4/6/Top-Picks-from-Josef-Schachter-Delphi-Energy-Long-Run-Exploration-and-Tamarack-Valley-Energy.aspx