still have negative free cash flow though, right? FY 2012 1.2 billion cash flow ops, 1.7 billion PP&E investments (mitigated by 1.6 in asset sales). So the proper question is can PWE internally fund required investment to keep ops going + dividend at low - current - high end oil price scenarios.
The first quarter cash flow was negative by about 170 million because of front end loaded CAPEX the last three quarter will be easily cash flow positive as long as WTI oil prices stay in the $85 + dollar range and the spread between canadian oil and WTI remains below $7. If you analyze the first quarter cash flow statement in detail you will note that PWE is managing their cash flow properly. Based on the statments and projections for CAPEX in the last three quarters which will be significantly lower they are covering their dividend. It is strang that now one in the investment community has pick up one this. When they sell their Duvernay assits or joint venture it should bring their debt well be low $2 billion which will lower interest payments by about 50 million plus per year which will aid the cash flows.
By PP &E I assume that's property, plant and equipment. That is capital investment, not expenses. Expenses are matched by taking PP&E as depreciation and depletion over their useful life. You, too, should study some accounting before trying to analyze a financial statement.
C'mon Auggie, your just talking nonsense! Who cares about that stuff? The important thing is that they lose money but continue to pay a sweet, super safe secure dividend, according to our very own board MBA. Consider that they don't even make the cost of their capital and that oil will decline this year, why, what's the problem? Internal funding schmunding, they'll just borrow more and sell assets later. Mr. MBA must be right, and the whole market is wrong. (Excellent, succinct post, BTW... you, I mean..not me...I'm not succinct at anything hehe)
Whitebear is just showing his ignorance. In order to determine the cash used and generated, one must add back noncash writeoffs such as depreciation and depletion. This isn't MBA stuff, its accounting 101 and its clear Whitebear is basically ignorant when it comes to reading financial statements.