RE:RE:RE:RE:A dog is a dog regardless of its name CPG - VERENThere is really nothing wrong with WCP debt.
You really don't want people to send their capex so that balance sheet looks perfect every quarter, that is really a case of the tail wagging the dog.
They have a capex play of between 900 million and 1.1 billion.
So according to budget Q1 was 430 million or about 43% of the capex mid point.
So if on average they spend 200 millon a quarter for the rest of the year, add 200 million to cashflow, back of napkin. In Q2 oil price has average over 80 dollars.
So that simply means they will likely be around 1.3 billion next quarter, 1.1 billion Q3 and will be at the low end of their debt target by year end.
CPG has about a 4 billion dollar debt anvil hanging around it neck.
WCP is just getting started in Musreau an area that was identified as key acreage in WCP 2022 XTO acquisition and upcoming development is expected to generate top tier economics.
If you don't spend any cash the balance sheet can look prestine, but this of it this was after the most active quarter in the history of the company the exceed their guidance, raised their guidance, save 10% on the buildout of Musreau, and will likely crush their numbers next quarter.
The most significant event is Musreau as likely the #1 future opportunity in WCP is now producing with 8 wells online.
Maybe WCP needs to follow CPG and put "truth" into your new name because no one believes the management of CPG anymore.
IMHO