RE:RE:RE:RE:not a good healine
I am well aware of debt covenant ratios.I am also aware of when the debt is due.I am also aware that over 50% of the Baytex production cannot even cover the marginal cost of production (without hedges) at these prices.I was merely pointing out that anyone who may think dividend could be reinstated anytime soon is not realistic.They will be lucky to make a netback of $5 on their heavy oil over the coming year.The production will continue to fall for a year or two.Then it will take at least another year to get production back to where it was before the slide began.When major portion of debt does become due 6 or 7 years from now they want to have the interest rate at 4%-5% NOT 10%+.I was trying to inject some long term thinking into the conversation.Just because major debt isn't rengotiated until 2022 doesn't mean it can be ignored until 3 months prior to it becoming due.The groundwork has to be laid years in advance in order to have a strong balance sheet in order to negotiate from a position of strength.I hope this better explains the thought I was trying to convey.