RE:RE:RE:Noodling with the numbers, and FFO guessesYou can call me sportster, as I use it on several sites, just that I can't get that handle on Stockhouse.
I think I would look at some calls during a bear market in Sept/Oct, who knows about interest rates either.
Yes that was a great deal Petyo did, is there any other potential for another one similar? Probably not as good as prices have improved since then. Also others may want more which is not in their favour. Only when firms merge and feel that a small play in that area is no longer feasible then a deal can get done.
I do the same thing in my area of selling collectibles, I sell stuff I don't feel is feasible for me but is to others whether too expensive or too cheap. Each has an area of expertise.
Great deal, not to mention a lot of drilling potential.
A lot of things in their favour right now, NG at around $2.60 US, not sure if they get that or more with hedges, depends upon whether backwardation in pricing.
Improved debt covenants yep, reduced expenses and will probably not return to those problems ever. Reduce debt or increase production permanently. If you do both wow. Then they can't get into trouble.
I am quite happy with approx 40 wells drilled in the first 3 months. It is quite possible funds from these wells will pay for another slew of siimilar or more wells in the next 10 to 12 months with the rates of return they will be getting.
We all have to remember Peyto's deals were done to save the company from total destruction by TCP, pricing, the Alberta governement and the feds, they deserve all the problems they are in a way doing the same thing to Canadian oil and gas companies. It is becoming a US company with no thought for Canada whatsoever. What is going to happen to CP Railway? I remember when at TD it was Canada Trust in various areas taking over, not the other way around.
Then take into consideration the new efficiencies in drilling another wow even surprising Gee and Co. Tough times bring about new efficiencies.
Because Peyto's wells drill longer than we will survive, the costs associated are very low on an annual basis, environmental effects are being reduced over time and eventually it will be minimal.
We just need a quarter after quarter of good news, over and over and over to hammer in the justification for new investors and improved pricing.
This is not for short-term investors.