Dividends I don't see where the debt can't be paid off earlier.
some comments on PNE and G. Fink - listened to a pne podcast from the current CEO there
- George recruited him and remains one of the 4 largest shareholders in PNE.
- just like with BNE George lent money directly to the corporation in order to get PNE out of some liquidity issues.
we really need some debt to run the company efficiently. When wells pay out in 7-12 months payng 6-8% interest to move activity forward is a good use of capital.
the bizarre way that our banks have been lending, reviewing,restricting and cutting back credit lines and reserve based lending is far too unpredictable. The future looks like more term debt and multiple tranches to stabilize funding. Generally with fewer covenants and medium dated terms.
I think BNE will go this route and term out some debt, pay some dividends and grow some production. 100 to 150 million of debt is very affordable and at 70 dollar oil they could pay 2 dollars in dividends and still pay debt down by 30 million per year