Long Run Explor Ltd Ord WFREF

Just looking at Numbers

[Froyalmac09]

Company has enterprise value of $780 M and has daily production of 33,000.  

This equates to a value per barrel of $24,000.  Is this not dirt cheap even with oil at $70 CAD a barrel?

They should generate $200 M free cashflow, which would indicate that based on Market Cap is less than 1 times and on debt level 3 to 1 based on current price.

I wonder also if they can sell a royalty stream similar to PWT.  I would think that this company would be less risky to the royalty company than PWT.

I must be missing something.

[flipher]

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[Reflect]

In other words LRE can handle the debt & with stable $55 oil, things are looking good. The next bench mark is $60.00. NG needs to rise. Compared to others, LRE will be more stable as shares are acquired by those that want them for a long position rather than the quick turnovers prevelant with other stocks in similar positions however; with greater debt loads & instability. At a certain

[flipher]

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[emmitt]

LRE should not even consider reinstating dividend until debt is greatly reduced and balance sheet looks good. I would actually like to see no divident for a couple of years and then maybe a tiny dividend if the balance sheet is prestine.

[Ahkenahmed2]

Dividend re-instatement:  No.    Agreed.  Further, I am confident mgmt in already knowing this action to be untimely, will instead hunker and kill debt where they can. The company will reduce the debt by their stated target:  100mil as the company has migrated all available cream (read cashflows) .. and .. add to this .. the 44 million $ annual dividend non-payment savings

[flipher]

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[aaaaaargh]

Having a dividend, instead of using that money to pay off debt in the first place is the very reason that LRE is valued where it is... To reinstate at these oil price levels would be crazy...

[baranja]

I agree, it is a bit early to talk about dividends but,  here is my 2 cents. First, it is not true what you are saying. LRE was in the range of $1.10-1.30 while there was  dividend paid, even when Oil was around 40.  As soon as they removed dividend this crashed to .60s.. and that is the fact, real fact, only fact.. So, with share $60 cents or $1.20?  Can they raise more

[Reflect]

baranja: What are you taking "goofy pills." Quit making an idiot of yourself & do some DUE DILIGENCE & start learning for real how the market works.

[flipher]

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[Reflect]

If you actually listened to Baranja you would realize his premises are all wrong. In fact, LRE is a highly leveraged co. & actually waited to long to drop the dividend. This should have been done as early as October 2014 but December 2014 should have been the last payment once it was an established fact that oil was to stay down; with LRE submitting a new revised financial guideline. Also