OTCPK:VREYD - Post by User
Post by
BlueCollar51on Aug 15, 2015 3:05pm
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Post# 24021709
TORC POR; 6 months ending June 30 2015
TORC POR; 6 months ending June 30 2015
I don’t have a position in TORC but out of curiosity I decided to see how it stacks up to the companies I do have positions in.
In light of Paul Gardner’s recent statement that the POR was 200% I checked it out.
The Q2 numbers were actually quite good due to better commodity prices and a minimum of Capex.
In my “opinion” the first half of 2015 gives a better picture of reality. I used these numbers found in the Q2 report. I could have used the FFO “including transaction related costs ($58.947m)” which would have generated worse results.
Funds flow from operations, excluding transaction related costs = $63.803m
Capex (Exploration and development expenditures, including capitalized G&) = $50.566m
Cash Dividends = $21.013m
Value of DRIP = $8.106m
Cash POR = 112%
All In POR (including value of DRIP shares) = 125%
Although these numbers could stand some improvement they are far from terrible and nowhere near 200%.
At this point it’s hard to estimate what the rest of the year will bring.
As per the Aug presentation the 2015 Capex budget is $125m which would be abt. $74m in the last half of the year.
The production from the recent acquisition will help but the current commodity prices if they persist won’t.
Having the CPPIB as a partner is a good thing. These guys are smart and think long term. They won’t allow the balance sheet to blow up. If the commodity prices don’t improve a Dividend Reduction is Probable. Time will tell.
For anybody who wants to be “Invested” in the Oil and NG industry TORC is probably one of the better choices.
If I was looking to increase my exposure to the industry (I already have more than enough) TORC would be on my short list.
As Always, Do Your Own Due Diligence; It’s Your Money !!