RE:Kelt downside - be awareI don't feel the risk that exist is the same as for other companies, their overhead is reasonable, the CEO takes no salary, and they have been struggling with gas plant issues in Wembley/Pipestone all year, and still made steady progress.
If you look at other companies carry significantly more debt lie TVE and AAV all in the same plays with significantly more debt, buying back shares, and paying dividends, these guys are the guys that you should be concerned about because they are evaporating capital off the balance sheet at a good rate.
Kelt does have hedges in place grant it not enough but the premise that they have no hedges in place is simply not true.
Kelt Hedges Link Also their reserves are significant, and they are in a better place with less debt than other companies, with a CEO that has the capacity to float a debenture himself to shore up all the debt in the company.
You guys are just getting nervous, and I like Kelt because it is just a oil company, they are not playing god with share buybacks, they put all the money into the ground, and they don't carry a lot of debt. They to us wells are coming in cheaper, they may be some cost savings on the drilling side.
I am more confortable with Kelt than with (CVE, SU, CNQ) because it is way simpler operationally and way more direct value creation. Even AAV and TVE are making their business very complicated and you need a big finance team to manage it, i feel confident that kelt is simple, straight forward and has premium assets.
Maybe is because Kelt is simple minded lie me....
MHP
IMHP