GREY:WFREF - Post by User
Comment by
emmitton May 27, 2015 3:11pm
152 Views
Post# 23770731
RE:not comfortable
RE:not comfortableHedging is a key part in any oil and gas company. Management having strong hedges in place is proper managing of assets. CPG is praised often for it's strong hedges.
They did spend beyond their cash flow last quarter but they were transparent in doing so. They are forcasting only spending 10 million in cap ex for the second quarter.
They are looking at selling 5000 boe/d of non core assets to reduce debt levels. I encourage you to call investor relations and get a feel for the companies plans going forward. It seems very well layed out and well planned. (ie. Using 52.50 WTI for the average price 2015 is conservative)
I'm not sure why you feel $70 oil is required but it's not. (I see WTI stuck range bound around $55-60 for a while). NAtural gas prices are what I think will be going up in the second which will help the company going forward.
I'm not happy with the amount of debt the company is holding but I am happy with the companies plans going forward.
Good luck