Long Run Explor Ltd Ord WFREF

lre update divy cut

[moneybelt]

https://finance.yahoo.com/news/long-run-exploration-ltd-announces-230000116.html?.b=quotes/&.pid=pf_2&.h=Portfolios

[JohnJBond]

I'm pleased the dividend is finally done. In my mind, it was a soft share buy back, as I'm sure a lot of that dividend money just went into buying additional shares.     I don't think thats needed any longer.   At these levels, smart money is finding its way into LRE on its own (see Templeton's recent increase to 35 million shares) Its also nice that they've

[theman0]

Good post. Only thing I would disagree on would cashing in on the hedges. Assuming we are talking about the same thing; they have hedges and they have costless collars. The costless collars are basically naked short positions that they are "In The Money" and I would definitely agree that those should be sold. In fact I recommended to the CEO that they should do that very thing several

[theman0]

Where did you get the cash flow number of $100 million? There was no number in the news release that stated what the cash flow numbers would be.

[JohnJBond]

Its implied. They said their cap ex will be 100 million, and followed that statment with "Long Run's revised capital budget is expected to be fully funded by funds flow from operations."

[theman0]

I think it will be higher than the $100 million. Perhaps about a 25% reduction from their previous guidance of $200-$210 million. $150 million or perhaps, $130 million on the low side and $160 million on the high side.

[bossu]

Quick guestimate: At $70 they were projecting 200 MM on a 36 000 b/d.With oïl price at 50 it should be 142 MM ,But production is going to be cut by 10% Most probably $ 142MM is a ball park figure.So debt/cash flow will be 700 MM/142 MM or 5.0 .Not a nice number and bankers must not like that . They had to do that move.

[righand2]

You forgot about the drop in the price they assume for nat gas, so subtract another $40 million, plus the cut in production. They will be lucky to achieve $100 million in cash flow.

[JohnJBond]

As for the market response.............it should be positive, but one never knows  what knee jerk investors will do. Today LRE reported the obvious (price of oil/gas, and the resultant cash flow) - nothing hew there. They elimintated a cash flow bleed (dividend).   Thereby making the company more valuable. They reported better results than we've seen before, and better than