GREY:LSTMF - Post by User
Post by
chantal2468on May 23, 2015 4:51pm
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Post# 23757752
more evidence for my opinion...Bellatrix...44K b/d
more evidence for my opinion...Bellatrix...44K b/d
$700M debt has enterprise value of $1.4B....so what do you think remaining LTS would be worth with 20K b/d with $600M debt....somewhere between $800M and $1.0B (because it would be less gas weighted than Bellatrix) which equates to $1-$2 per share.So yes....I would be very surprised if LTS would be worth more than $2 is Bakken sold for only $1.1 Billion.Even our illustrious mgmt. isn't stupid enough to give away the Bakken for $1.1B....They know it would be the final nail in our coffin.....I would rather ride this stock to zero than have them sell the Bakken for $1.1B.It is virtually impossible to breach covenant for the next 24 months at $50+ oil with absolutely zero drilling and 30% decline rate....that is a mathematical fact....run the numbers for yourself....we have to sit tight and drill only when it is worthwhile and keep pushing for a buyer of some assets....yes the company will be contracting for the next 2 years....BUT...no one will be forcing us into a sale we don't want...after 2 years,if no sale takes place and oil price is stagnant,then yes,we will be a basket case and I wouldn't want to own this stock at that time....I hope for all our sakes that doesn't come to pass.