EXPM:EGRGF - Post by User
Post by
OOU812on Jun 10, 2017 1:15am
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Post# 26348261
More Debt??????????
More Debt??????????I've seen a number of companies disappear over the years.
What did most of them have in common?Too much debt.
Like they say, smart management doesn't need debt and
the not so smart shouldn't use it.
for a commodity producer to do well,they need to keep costs
in check.With $20 field netbacks eagle should be in good shape,
but after $7 G&A and $5 interest charges there's not much leftover.
With $12 worth of overhead, most companies would be hurting.
With a more normal $5 overhead and problem solved,cash flow
has increased from $8 to $15 or almost doubled.
Was the div elimination necessary?
Was the extra debt necessary?
Was risking eagle's future necessary?
No,reducing the overhead would've sufficed,
instead they increased it??????????????