GREY:WFREF - Post by User
Comment by
thefabergeggon Jun 02, 2015 6:57am
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Post# 23787672
RE:RE:it would appear
RE:RE:it would appear@JohnJBond - the fact that you're still trying to justify an investment in LRE, buy into it or hold current position why don't you admit or offer a mea culpa that your investment thesis were 100% wrong - the share price tells you that. The play was to get sell or short it at 3-2 heck even 1.
I'm waiting...
JohnJBond wrote: This managment team has hedged a large chunk of their oil sales for the first half.
If I remember correctly they are much less hedged in the second half.
This is consistent with those who think oil will rebalance.
I think you'll find just about all the share buyers believe as management does, that oil is on the way up.
Oil has rebounded nicely so far in the first half. I'm looking for good performance in the second half, and a positive surprise from N.Gas.
As for the credit facilty. At the AGM presentation they were draw down to $626 million on the LOC.
A year from now, their LOC will have a $450 million limit, or $176 million less than currently borrowed. They were budgeting to reduce thier borrowing by $100 million by the end of the year, and with current oil prices, were likely to have $30-70 in excess cash by the end of this year.
What we are really talking about now, is finding another $76 million in the first half of next year. If oil prices have rebounded by then, its conceavable they will have that much more extra cash by this time next year.
For obvious reasons, if oil price rebound in the second half, as expected by just about everyone except GS, then this debt repayment will take care of itself. There will be more cash from general revenue, and non-core assets which are held for resale anyway, will be that much more desirable, and expensive.