recap
fyi I have two accounts. Rexmember and this one due to issues with logging in - just in case you want to ignore lol
as far as the recap and reserves - I don't dispute YGR reserve numbers. They revised their numbers about 2 years ago or so - I think they are accurate now. But actual free cash flow is brutal.
I don't really think YGR is at risk of bankruptcy either. They might be given marching papers from their lenders at some point if the lenders don't like the production, cash flow or debt ratios. The lower ARO numbers that Kavern likes to mention does help them maintain a bank line because the lender is not at risk of being in second place behind well clean up costs. (ie Redwater Decision)
If debt ratios continue to deteriorate, if their drilling results are poor or decline rates accelerate - or if gas prices don't see the usual uptick next fall/winter then it could be a forced workout or recap.
The recap does not have to be a total negative in the sense that maybe they issue 100 million new shares at 50-60 cents, pay down some debt and/or merge with a debt free company like Surge did to bail themselves out two years ago. Surge is the only one I can think of that maintained the same management though.
This company is not like PNE where they can stop drilling for two years if they want to. Decline rates are too high and the drilling results to variable. Which is why a recap when not forced to is a better position to negotiate from.