This company need WTI around $50You will find the answers when you compare Q2 & Q3 results. I recall that this company mentioned after second quarter that they needed around WTI $47 to break even. I could not find the breakeven level but now they are talking about $50 WTI. They use to have a decline rate of 21 % now it 24 % which is still lower than the average of 30 % for some others.
At present WTI prices math is not working for this company. They are burning cash as their debt is going up. Their reduced bank line of $250m still has room. Now debt to cash flow ratio is 1.84 times annualized for the quarter. According to second quarter highlight the Company had a debt-to-cash-flow ratio of 1.53 times annualized cash flow for the quarter.
If oil stays in the range of $42 to $45 for a while then their cash flow to debt ratio is going to run up further.