RE:RE:RE:RE:RE:RE:RE:Any risk of going under here? Most of the debt is fixed but the revolver is prime + ??%. I don't have an issue with the fixed term loan, it's the general path they took. Options were: A) they could have made a more significant asset disposition (heavy oil) and extinguished balance of the revolver while boosting liquidity on the balance sheet. OR B) rely on CF to pay down debt.
Management went with Plan B (notwithstanding the small asset sale to WCP) which is risky and dangerous. This plan's downside is its vulnerability to low commodity prices.
My Issue is the risky path they chose. Post ranger acquisition, they should have sold more non core assets aggressively. Net of the process, they would still be a 100-110k BOE producer!