Journey Energy Inc T.JOY

JOY unhedged..look at Aeco price!

[hawkowl1]

Daily Spot AECO

($CAD/mmbtu)

4.050

[Justhalffull]

Yes, with all hedges gone, JOY's q 3 cash flow should blow the doors off.  Add in the huge boost from the electricity power plant, and it is hard to understand why the shares have not started to move.  Results around Remembrance Day should make it clear to all.

[pennydredful]

Its   easy   to  understand   to former   Briko   shareholders  like   me  ,   the    3.5M   shares  were  like    found   money  under   the  Chesterfield  cushions   as   Briko   shareholders 

[baranja]

Is it realy completely unhedged now?

[Justhalffull]

Completely unhedged, high oil and gas prices, high electricity prices, and a purchased increase in production of 700 boe/d.  All positive for Q3.  Expect Cash Flow to top $10 million for the quarter, debt to be further decreased.  All good news.  Market just has not caught on to this gem.  Be patient.

[baranja]

What get me here is this: Reduced net debt by 40% to $75.7 million from $126.6 million at the end of the second quarter of 2020. How did they manage to accomplish that,  and it was when oil and gas went to negative?  That was one fantastic achievement. 

[Justhalffull]

The management of JOY refinanced their sinfpdicated debt of $75 million by getting a loan for $38 million from AIMco,   AThey also have to pay an additional $5.75 over the next 3 years under certain conditions.  They also had to give AIMco 5,000,000 cheap warrants to get the loan, but in the end a great deal for Journey.  Details on the restructuring can be found at the link below.

[Justhalffull]

At the time this deal was made, oil prices were in the dumps, and many companies were on the verge of bankruptcy.  Guess the syndicated bankers got cold feet and decided to settle for just a bit more than 1/2 of what they were owed.  Great feat by Joy.  And then they lucked out on the Power generation sale when the purchaser reneged on that deal and had to forfeit the near $1

[baranja]

Holly sht.. what was one great story,  Wow.

[pennydredful]

Banks    were   detterred  by   the  fact  that  in  liquidation   abandonment  liabilities   would   be   ranked    ahead  of   the  bank  loans   and   JOY   has   significant  abandonment  liabilities

[jenksh]

Purchased today. Liked decline rate...insider buying...debt replacement news...low spending