PEA DebtI dont know about the new Stockhouse thread structure- I think people only see the first post. So I'm starting a new thread, even the subject doesnt change.
I was projecting maybe they could pay their debt off in 3 years, even though they can only keep up the current rate of paydown as long as their hedges last.
Hedging or no hedging- eventually they will be selling gas at the current price.
And even when the price range was about 10% higher than it has ranged since January- in 2020 and 2021... PEA was unable even to pay all the interest (including the PIK) and Accounts Payable were steadily mounting.
People I know in the business, who want higher gas prices, are not expecting that for the next few years out.
Maybe the debt has gone down enough that PEA can afford to cover the whole 15% interest- even with gas prices returning to 2020 levels. But that says nothing about paying down the debt. And I dont know if there is a time range that can reasonably be set for having the crippling debt gone.
They dont say anything about it in the MDA. Guessing it was the same during the call.