RE:RE:Hedges
Prime held cash of $115m (AOI's share) as at Dec 31. By the RBL redermination date of Mar 31, that should be $200m or more. That could allow for a further $100m paydown and a dividend of $50 - 75m to AOI.
It is a rising interest rate environment but it is also a rising oil price environment which will be much more significant to Prime's cashflow. Also the reduction in debt levels gives Prime more leverage in negotiations.
I think 2H 2021 could see a lot of good things happen for AOI starting with a more favourable RBL re-fin, more consistent divindend flow from Prime and, of course, any success from AFE EOG and Impact. And dare I say it, Kenya. Keith Hill would not be making mention of it unless there was some basis for it.
But in the meantime, more patience required I think.