Post by
Sir_Holler on Jan 23, 2013 7:03am
Financing
Since that financing was being put together and announced there has been a significant change in general market sentiment. PXL may now be getting a netback of $30 on its non-hedged/non-railed production, and by December it could be getting $40. If PXL announces a forcasted 60% increase in production for 2013 next week it could have 4,320 barrels a day of production by year end, and given the higher netbacks by the end of the year it could have annualized cashflow of $63 million; but one year from the end of this year its forcast production for 2014 could have exit production 60% higher again. It is putting in place additional run-way for growth right now with the financing and will soon announce a reserves update expected to be significant. The financing may have offered a nice opportunity given the general market reversal, and the prospects for this company. We do live in volitile times, however.
Comment by
REAPER on Jan 23, 2013 9:06am
Top line heavy oil prices depending on oil quality were around $40.00 not netback
Comment by
RIG500 on Jan 23, 2013 10:05am
I don't think PXL will be big spenders in 2013, somewhere in the range of 30-35M budget. They would average 3000-3200 and exit around 3500 which is still excellent growth. WCS prices are expected to strenghten in H2, this is where the money will be made. For now, hedging and railing are doing the job right now.
Comment by
Sir_Holler on Jan 23, 2013 10:24am
don't think PXL will be big spenders in 2013, somewhere in the range of 30-35M budget.
Read more at https://www.stockhouse.com/bullboards/messagedetail.aspx?p=0&m=32062435&l=0&r=0&s=PXL&t=LIST#Frd5Bygwk1kOWoGo.99 The key for 2013 should be that the budget is focused on growth given the salt water facilities invested in in 2012.
Comment by
Sir_Holler on Jan 23, 2013 10:32am
The budget will further be spent much more efficiently: "The Company has also developed well past the basic HVL ‘pod’ model. Numerous ‘pods’ have multiple salt water disposal wells per facility, with the largest ‘pod’ currently having 11 producing wells, with salt water disposal through one central facility."
Comment by
seanyboy on Jan 23, 2013 11:19pm
"don't think PXL will be big spenders in 2013" How is capital spending in 2013 about equal to market cap not big spending when PXL is already in debt greater than its market cap?
Comment by
RIG500 on Jan 24, 2013 12:55pm
The figure that matters is their debt to CF. IF they keep it around 1.5 and grow production over 3,300 boed in 2013 then we're doing great. Guidance is coming, will answer all the questions, my guess is capex of $30-$35M.