RE:RE:RE:Conference Callcapedcrusader wrote: Yeah, that was a good one. Like how they wou;dn't comment on ANY Capex for next year. "we'll tell you next year', It's only a month away guys, and you need all the good will you can get from those analysts. At these levels, maybe an activist shareholder comes in and makes them sell....
I think Birch Hill remains the largest shareholder, and they installed this crew. Ever since Rob departed I feel the company has been extremely shareholder unfriendly in terms of disclosure and engagement. Maybe Birch Hill's plan is to drive it to the brink of extinction and then make a bid to take it private (a la Fairfax and Farmer's Edge), holding out for improving markets. Probably not, but who knows.
It's not so clear to me that another team could come in and actually make these assets generate enough cash to compensate for the debt and decomissioning liabilities. TWM has always been a "next year" story with respect to cash flow.
PGR was enjoying a long period of very high crack spreads, driven (I think) by heavy construction in the region. We're probably entering a new normal (or reverting to the mean) as the economy cools, so lower margins are likely here to stay. As far as I recall, the midstream assets never spun much cash even with higher AECO. As gas prices improve it will be interesting to see if this team can eke out some profit from them... assuming they an keep the lights on until then.