GREY:WFREF - Post by User
Comment by
qwqwon May 31, 2015 11:25pm
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Post# 23783175
RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:qwqw calculation
RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:qwqw calculationDiv payers like CPG tend to buy companies with decline rates below 20%.
For Q1 CPG's div was eating up 75% of their CF,leaving next to nothing for
capex.Big surprise their debt is rising fast.The last thing they need is a
company with high decline rates and no hedges.
A company with 20% decline rates needs half the amount of capex as a
40% decliner like LEG.How much more is the low decliner worth?