PGH borrows hundreds of millions of dollars in unsecured senior debt today.
Wait a minute. They were well capitalized when they bought NAL. They did a significant amount of new shares, and stock dilution. They sliced the dividend to pieces. Oil is 90 bucks a barrel. Nat gas is way over its lows. why cant a company like this generate cash. MORE SHARES. MORE BORROWINGS. CRIPES, ITS LIKE PGH IS A PONZI SCHEME.GO DEEPER INTO DEBT, TO GET MORE OIL AND GAS. I THOUGHT YOU WERE SUPPOSED TO MAKE A PROFIT. IF PGH CAN'T MAKE MONEY AT THESE PRICES, WILL THEY EVER MAKE MONEY AGAIN ? They should at least be generating positive cash flow. It aint all going to the dividends. Whats going on here ?
I have been watching (PGH) for sometime and looking to purchase some shares , Stock seems to be headed toward a samilar situation as Harvest energy which got bought by Korean National group.
Depents on who will buy them if it would work out ,
Looks like a good deal - lock in these low interest rates, pay off some higher cost debt....PGH is a good play if you think NG prices will be higher in the future. I was impressed they got such a good deal for unsecured debt.