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Yangarra Resources Ltd T.YGR

Alternate Symbol(s):  YGRAF

Yangarra Resources Ltd. is a Canadian junior oil and gas company engaged in the exploration, development and production of clean natural gas and conventional oil. The Company has its main focus in the Western Canadian Sedimentary Basin. The Company has developed its land base to target the halo Cardium at Ferrier, Chedderville, Cow Lake, Chambers, O’Chiese, and Willesden Green with a focus on exploiting the prolific bioturbated zone as part of the entire Cardium package.


TSX:YGR - Post by User

Comment by Hunguson Jul 22, 2022 3:54pm
143 Views
Post# 34844318

RE:RE:RE:RE:RE:RE:RE:RE:RE:Time to man up.. Dig in

RE:RE:RE:RE:RE:RE:RE:RE:RE:Time to man up.. Dig inThat 1:1 debt to annualized FFO ratio target that YGR always mentions, just means that at that point in time the debt level really becomes a non-issue - because they now have sooo much more money coming in that, if they wanted to they could just pay off all their remaining debt in less than a year. But why the hurry? Unless their interest rate on that debt suddenly sky rockets past 19% per year, it is still way more profitable to just slowly paid it down and continue to benefit from the leverage effect. (Their annualized return on capital employed was 19.1%, but the cost of the capital from the debt portion was only 4.9% of annualized interest as of their 2022 q1 report)

It's pretty clearly stated how they arrive at that ratio in their MD&A reports. And here is how it has been going for them lately:
2021 q3 was at 2.1 debt : 1 FFO (annualized)
2021 q4 was at 1.5 debt : 1 FFO (annualized)
2022 q1 was at 1.1 debt : 1 FFO (annualized)

At that rate, I am certain that they have achieved their 1:1 target already. Now, we'll finally get to reap the rewards with a significant stock price re-rating (due to the dividends turning lots of heads, and of course from scorching the shorts).



fullyautomatic wrote: I'm positive a ratio for div vs debt hasn't been disclosed. 

In fact I'm not even sure I understand the statment in the slide... Its says something like: when debt is 1:1 on a quaterly basis FCF to be used for divs and debt...
 
Honestly I don't know what that means.. 


Hungus- I just picked an even .02 cents a month and worked out from there to illustrate costs and impacts

All I am trying to communicate is please don't buy this stock expecting big dividends. I don't think it's in the cards.

By all means buy the stock and expect a double on the current SP


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