Long Run Explor Ltd Ord WFREF

For sale cheap... must go!

[Klens75]

Bulk LRE stock for sale... 75 cents per sq foot starting next week!

In all seriousness this company is in heeps of trouble. Way too much debt and a dividend that's not even close to sutainable. All this and they have to sell in a buyers market. Their properties are going to go for fire sale prices.

Should have made hay when the sun was shining...

[theman0]

Not only are you an idiot but you have no clue what your talking about. The payout ratio was only 23% as of the third quarter report. They have plenty of hedging in place; in fact they have costless collars on several thousands of barrels; these collars provide firm downside protection in the case of a commodity downturn. But if I was LRE management I would cut the dividend just because the

[JohnJBond]

There is no cost to the company to announce a share buy back plan, so it is quite likely.  I would include it in the news release if it were me. Unfortunately the market is wise to these buy back announcements, and gives them little weight, as in most cases the companies don't buy back a material number of shares.   Buy backs are limited to 10% of the float, so at $1.3 per share

[theman0]

Your right JohnJ, the announcement of a share buyback is more of hypothetical tactic than a reality. But at least it keeps a door open if they feel the need to step into the market. Take 10% of the float out of the share pool every year and you pay dividends on 10% less as well. But it is more likely that they would use any savings to continue with ongoing projects.

[JohnJBond]

I'm looking for a complete dividend cut announced on Monday If that is not the case, I'll reassess at that time. I imagine Sprot is objecting to a dividend cut, while the rest of the board are pushing for a cut. I don't like compromise, so I'll not be very happy if the dividend is retained at a lower level (unless the company can assure me they have excess cash, which I doubt).

[theman0]

There is a ZERO chance it will be cut completely. Not even a remote chance. Have you not actually read some of my posts and the posts of other about the hedging program? LRE has done a spectacular job of protecting themselves from a major price decline in oil. Some of their hedging contracts are actually making LRE MONEY. They will only cut now because they can do it here and now with no penalty

[JohnJBond]

I seem to remember about 30% hedged.     I consider that to be 70% unhedged. Any of their oil hedging contracts that are not presently in the money, can not be considered hedging instruments.

[barneyj44]

As per Bill Andrew's email last week: Our 2015 operating and capital plan is being finalized and will be released along with 2015 guidance and any other news soon. We are very aware of the current strip price on oil and the impact on our funds flow balance sheet. Fortunately approximately 30% of our production is hedged for 2015. That eases the price shock to some extent

[99999gold]

the only reason to cut div or eliminate it is to pay down debt not to buyback the stock, that doesn't help lre in anyway other than reduce its float - it will sell off on any buyback program initiated.