Post by
pablo87 on Nov 13, 2019 9:17pm
Q3 #s and presentation are out
Worth a read. Negative $1M cashflow partially due to lower WCS. Also, they changed strategy. They are focused on a business combination it seems and because of this, are spending money to reduce the abandoned well count (I imagine because of Supreme Court decision, remediation costs of abandoned wells are deducted from borrowing base? WAG) Presentation says they are spending $1M on this in Q4 which will take care of 10% of abandoned well count (a simplistic extrapolation means the liability is $10M). Based on commodity prices looks like Q4 will be cash flow negative as well. A lot depends on WCS incl. survival. Well I like the new plan and I have no reason to not believe CH but at the same time, I'm only investing what I can afford to lose.