Q2 - inline with 4 Aug NR but some hidden improvement FFO pretty much dropped with production declines and would have been relatively better than Q1 w/o the extra royalty charge - driven by better oil prices. Gas prices were low this quarter.
This hid an improvement of roughly $ 1,25 p/b of netback, there's another $ 0,77 in normalized gas production volumes (for a total of $ 2,02) - the rest of netback improvement will need to be driven by improving O&G prices or increased volumes.
Controllable Cash cost continues to be low and even dropped slightly compared to Q1: $ 8,50 to $ 8,36 in Q2.
The MRF royalty framework will have to be factored into any 2017 projections and possible sales, as it will improve netback - how much this is we don't know, but we know it's positive and adds direct additional value to RMP through either production or asset/company sale.
All in all the biggest news is, which I assumed but is now confirmed, that the $ 100 mln credit line is confirmed to be fixed for basically a year. This means the credit worry can indeed be taken away by FFO (with better YE prices) or a $ 5 - $ 10 mln secondary if needed, or maybe even sale of Kaybob.
RMP than resets the $ 40 - $ 50 mln FFO capex plan for 2017 w/o the need to spend $ 20 mln on Gold creek and with increased O&G prices + bringing on Gold Creek can start to grow again.
Never know how RMP sp reacts but don't expect a big move down - I have been buying in bits and bops.
R.