Pieridae Energy Ltd T.PEA

PEA Debt

[commonsense101]

I dont know about the new Stockhouse thread structure- I think people only see the first post. So I'm starting a new thread, even the subject doesnt change.

I was projecting maybe they could pay their debt off in 3 years, even though they can only keep up the current rate of paydown as long as their hedges last.

Hedging or no hedging- eventually they will be selling gas at the current price.

And even when the price range was about 10% higher than it has ranged since January- in 2020 and 2021... PEA was unable even to pay all the interest (including the PIK) and Accounts Payable were steadily mounting.

People I know in the business, who want higher gas prices, are not expecting that for the next few years out.

Maybe the debt has gone down enough that PEA can afford to cover the whole 15% interest- even with gas prices returning to 2020 levels. But that says nothing about paying down the debt. And I dont know if there is a time range that can reasonably be set for having the crippling debt gone.

They dont say anything about it in the MDA. Guessing it was the same during the call.

[noname99]

Generated Record annual NOI [1] of $201.0 million Reduced term debt principal by $48.3 million reduced the adjusted working capital deficit [3] by $50.3 million so forecast NOI in 2023 is 120-150$M they could repaid 60-80$M on debt

[commonsense101]

Their use of NOI has always seriously inflated how much cash ia available. All through 2020 and 2021 when they were only paying the 12% interest and deferring the rest, and running up Accounts Payable, they were chalking up considerabl;e positive NOI.

[commonsense101]

Its just anybody's intepretation of the numbers for making a prediction when they can eliminate the debt and not be hobbled by it. They have always spun every bit of good news they could. You can bet your booties that if there was a prospect of paying off the debt in the next year or two, they would say so.

[noname99]

I asked to them: with the revised 2023 guidance,  NOI 120-150M$, how much debts would you be able to repaid? Through the first quarter, we have repaid approximately $27MM of term debt year to date. With NOI forecasted in the 120-150 range we should be able to reduce senior debt by a total of 40-45MM for fiscal 2023. Obviously depends on requirement for sustaining capital expenditures for the

[noname99]

I asked to them: with the revised 2023 guidance,  NOI 120-150M$, how much debts would you be able to repaid? Through the first quarter, we have repaid approximately $27MM of term debt year to date. With NOI forecasted in the 120-150 range we should be able to reduce senior debt by a total of 40-45MM for fiscal 2023. Obviously depends on requirement for sustaining capital expenditures for the

[commonsense101]

Note how much slower the debt reduction will be for the remaining 3 quarters- approximately 15MM... 5MM per quarter. With a debt that is slated to be around $160 million at year end. Do the math.

[noname99]

they can refinance with a new arrangement with more flexibility. repay according to the price of resources. the amount is correlated to the gas price. Like Journey do.

[commonsense101]

Refinance the $180million due in 5 months, with who? The reason they are paying 15% with the loan sharks is because the gas assets that are collateral, cannot be sold by anyone because Shell still has the operating licenses. That was supposed to be short term. But Shell and PEA withdrew the AER application and have not resubmitted because its a lost cause as long as they have that debt hanging

[downwithdotcom1]

Yo, Common, still seeing your never ending stream of "black cloud" public service annoucements..keep up "the work"...........dwdc

[Zach88]

bro, chill. let him cook