RE:RE:RE:Q4 & 2020: Circling the Square"Hey GB! Did something change with the company or the industry to make you ready to dump it after a recovery? I understand the temptation to bail after hitting all time lows the last several months".
A little of both, company and sector. For about two years now; I noticed the company has no problem just jumping into a new venture and or acquiring assets with debt. I would like them to slow down and get their house in order by focusing on getting IRR up higher on all of their assets, if it means selling assets that don't produce, then sell the asset. PGR would be an example, although I think it could be accretive to earnings right away, I have reservations about the operating cost to maintain this asset on a ongoing basis.
If thing go wrong with TWM business plan, we could see the company stretched for cash to keep their asset running smoothly. We are years away from seeing that scenario happening though. Pipstone 1, BRC and PGR- When the time comes for a turn-a-round on these facilities, it could be millions and 10's of million for the Pipestone and PGR turn-a-round which could be every three years at the eariliest to maximum of 5 years. PGR might need to have shut down for maintenance on a more shorter timeline compared to the other assets. I'm just getting more cautious as to where I place my money going forward is all, and the oil sector is the last on my list to invest at the moment. And giving the recent oil sector dilimma in the works, now institutional investors are requiring companies to increase their return of shareholder value- one way they been forcing companies is they frown on acquistions, capex increases to increase production.
This is just how I see it right know, may change going forward if conditions change.