OTCPK:PDPYF - Post by User
Comment by
puntabeachon Mar 12, 2017 10:01am
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Post# 25969152
RE:OVERSPENDING by about $150 million in 2017
RE:OVERSPENDING by about $150 million in 2017perdikaoilgas wrote: I'm new to PPY and I am concerned that PPY will spend $288 million in 2017 while its annual operating cash flow will not be more than $130-135 million in 2017 given that it made $26 million operating cash flow in Q4 with 36,000 boepd.
So PPY will overspend by about $150 million in 2017 and its existing net debt of $220 million will skyrocket reaching about $360 million by year end. So PPY will remain overleveraged for this year and will enter 2018 with leverage about 3 times. And any wise investor must be concerned with this. The bulls here have to tone down and realize that risk and leverage are going together, so PPY will remain a very risky stock until at least early 2018.
That's really an insightful and factual post. However, PPY's CEO repeatedly downplays his company's leverage by at least 2018 no matter wherever he presents it in the US, Canada or London. He downplays the fact that he sacrifices the company's financial health for production growth. I had the chance to attend one of his presentations in London and he is a promoter....He made me a bad impression.