RE:RE:RE:RE:RE:budget proposal Here what should happen.
These guys added debt in Q4. That needs to be paid back ASAP. 15 mil my guess
Debentures come due end of 2020 45 mil 5 got bought back so far.
Thats 60 mil that has to be paid out before anything else.
Next these guys yap about 10% decline ok fair enough 2200 bbls needs to be drilled to stay even.
60 mil capex give a break 27000 a flowing, thats enough!!!
We have a MC of about 240 mil and debt 260 EV value 500 mil. Production should be 22000.
What the hel l,!! we are trading at 22000 per flowing. And it costs us 27000 to make up declines WTF!!! And we are not buying our own company. ????
Spend 30 mil on Capex and buy back 10% of the shares. !0% less shares that need a divy in the future.
So in short we have a 100 mil CF 20 is out the door with REC an DIV 30 for production maintanance 25 for share buy back or till the EV value hits 27000 per flowing. Rest goes to debt.
And no free shares for anybody till price of oil is at 70 for a year. Anyone that don't like it can hit the road.
Stream line the operation increase netbacks by !0%. Do that till oil trades above 70 for a year. If they have to much money paydown more debt.
DO NOT INCREASE THE DIV. !!!! Till oil trades at 70 for a year.