Twin Butte Energy Ltd TBTEF

RE:RE:RE:RE:TBE in good shape thanks to hedges

[PUNJABI]

March end 2015 the company was in compliance with all the debt covenants. The oil prices have improved since March end so the renewal of line of credit will be close the present limit. If there were issues the banks would have asked them to reduce dividend.  In case of PLT they have been told to cancel dividend till further notice.

The total payout ratio is 64 % they used some of the funds to reduce $20 m in debt.  On annual basis as per their projection with WTI $57.18 & AECO gas price of $2.69 the annual payout ratio will be 80 % & the remaining cash flow will be used to reduce the debt further by $8m.
 
bshort92

Yes there will be drop in production because they have reduced the capex .  At present oil prices it is better to have reduced production. If & when the oil prices rebound they will pump money into capex & production will rebound.  

You are ignoring important aspects  that the cost is dropping, cash flow improving, debt reduction taking place. Dividend yield of 15 % with payout ratio of  64 % for the quarter & will be 80 % for the year. If oil forms a base around $60 then the dividend is safe. Management is taking a 10 % salary cut. These are facts & not a spin.   If you think that the shares are going lower than why do not you take a short position ? Put money where your mouth is.

You cannot make money in the market if you are not objective. You are so caught up in you dislike for the company / management that you have lost objectivity.