OTCPK:PDPYF - Post by User
Post by
largeinvestoron Aug 13, 2015 10:56am
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Post# 24014740
2016 year end debt
2016 year end debtI'm surprised the analysts aren't more forward looking. They only seem to care about the amount on the line of credit that can be used.
As per PPY's latest presentation capex will come in at $287 million next year. Assuming they get the same revenue ($2.67) as they did in Q2, year end 2016 debt will be close to $300 million putting debt to cash flow over 10x.
Now obviously if gas prices rise or they do an equity raise with Altagas this won't necessarily be a problem. But just using Q2 cash flow numbers and proposed 2016 capex things are looking dicey here.