Post by
riddler on Nov 02, 2023 5:33pm
IF THEY PAID OFF 150M in DEBT?
Then debt going into Q3 was 2.85B. not 2.7B as noted by some.
Comment by
jleer42 on Nov 02, 2023 5:41pm
The debt is in USD and gets converted to CAD for the financial reports. The exchange rate at end of Q2 and end of Q3 is different. The debt in USD decreased from Q2 to Q3. However, because of the FX rate change the debt when converted to CAD increased from Q2 to Q3.
Comment by
masfortuna on Nov 02, 2023 5:48pm
Jleer i am not sure about that as I see they did pay back a 150 million loan.
Comment by
riddler on Nov 02, 2023 7:04pm
As such they paid off $150m but the debt level has not changed. Using your logic, they will need to pay each quarter $150m with current fx rates to keep debt at $2.7b. If what you are saying is true, might take 2 years to get to $1.5b using your logic given interest rates and current fx rates.
Comment by
ztransforms173 on Nov 02, 2023 7:24pm
- the USD GAINED AGAINST the C $ from 6/30/2023 to 9/30/2023 - IF the have a SMART CFO (and the BODs AGREE), they will HEDGE the CURRENCY RISK like the HIGHLY-REGARDED EX-CFO of MEG Energy USE TO DO with their MASSIVE long-term debt in USDs (since DRASTICALLY REDUCED) - did NOT read the enitire IFS so I am NOT SURE WHAT they are doing z173
Comment by
ManitobaCanuck on Nov 02, 2023 7:37pm
Why pay for hedging , when earnings are in US$ at LLS rates(premium to WTI) for Eagleford/Texas for more than 50% of their prodn . Its a natural hedge , u earn in USD and u pay debt in USD
Comment by
ztransforms173 on Nov 02, 2023 7:47pm
- you DON'T HEDGE ALL the EXPOSURE but ONLY PART of it - you have to LOOK at the 5 YEAR CYCLE of the long-term NOTES EXPOSURE and LIMIT your LOSSES but NOT ELIMINATE THEM as it is IMPOSSIBLE to FIND COUNTERPARTIES for EXTENDED PERIODS and EVALUATE the COST/BENEFIT of the HEDGING - hedging is TRICKY to MANAGE for F/X risk reduction z173