GREY:ZARFF - Post by User
Comment by
nkbourbakion Nov 17, 2017 12:55pm
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Post# 26985044
RE:LMR
RE:LMRrad10 wrote: anybody have insight into the liability management rating system used by the Alberta Energy Regulator. How is the rating system calculated? There is an ominous warning in the Q3 financial report how it could negatively affect ability to buy and sell assets.
I noticed that too.
Quick search found this: https://www1.agric.gov.ab.ca/$department/deptdocs.nsf/all/ofa16061
Interesting that Zargon financials say something about uncertainty regarding how this ratio is being applied. Monthly reports are freely available, so you can find the ratios of any company. I noticed that Obsidian (old Penn West) is at 1.60, under the 2.0 threshold. Hasn't seemed to have stopped them from wheeling and dealing. It's certainly unclear how insistent the AEC is on these companies posting deposits to cover the shortfall.
In Zargon's case, the magnitude of the deposit likely wouldn't be huge anyway, so I'm unsure how this would be a material restriction on their sales process.
Certainly would appreciate any clarity from the more knowledgeable folks...