Yes, i said,the dreaded b word is now a REAL possibility for PGH. They must do three things extremely well to avoid the fate, first, they must sell some assets at a good price, this they can accompish in my opinion, secondly, they must also borrow money at a decent rate to develop the Lindbergh project, this is also a good possibilty to do, third and finally, They must develop and do it as cheaply as possible, and importantly, very quickly. This is the most difficult of the three tasks that they must do. If anyone of these tasks fail, or are not done properly BANKRUTCY is a 50 50 option. They have well over a Billion in debt. I would also mention that nat gas prices, and crude prices allready are too high, especially crude, PGH will also have Crude at over 95 WTI to make it. TOO RISKY in my opinion, This stock is in a free fall, could EASILY go under 3 per share. Good luck and sorry for the bad news, but i call them as i see them
Sentiment: Strong Sell
I disagree with your analgy. Natural Gas Prices are bottomed and the way to go is up from here.
The pipe line ( Keystone) is going to happen. Do you honestly think the the U.S. Government is
going to screw Canadian companies one of it's best trading partners and allies. In addition the
dividend will keep going as stated by management so I would hardly think or have seen any company file a chapter 11 while being able to continue to pay a dividend. The stock and for the most part all these Canadian Oil & Gas former royalty trusts have not done well but I think you
are either in capitualization or close to it. The next two weeks will give more clarity. Also there
has been insider buying which would not happen if a BK was in sight. PGH needs to work through
I am amazed at how misinformed you are about Pengrowth.
Pengrowth has already sold assets to partically fund the Lindberg Project and has additional asset sales in the pipeline to fund the balance.
Management stated in their last conference call that Pengrowth wil not need to increase it's debt to fund the dividend at it current rate or complete the Lindberg Project.
The Lindberg pilot project has already proved the economic viability of Pengrowth's long life and high margin thermo oil assets.
As for energy prices, Pengrowth has addressed this by hedging future production at levels that will protect it's cash flow.
Pengrowth stock is selling for less than fifth percent of net asset value and paying a sustainable yield of 10.8%. While a takeover might be possible, companies with more asset than liabilities don't go bankrupt.
Sentiment: Strong Buy
PGH has quality assets and is still a rather low cost BOE producer according to recent financials.PGH has historically hedged much of its production to guarantee its revenue.
Oil demand will grow in developing countries and in China and India. Market pricing will not fall much if any below $ 80 BOE. Lindberg dramatically increase stock price when and if proven successful.
Barring worldwide recession and demand for oil not much risk with PGH especially at today's prices.
Aren't you a naked short or a front "man" for a company trying to drive PGH into the ground so you can attempt to get its resources cheaply? Guess what? It won't work! Notice the share price is stabilizing, and we might have hit bottom. I hope you and your vulturine compadres lose your shirts!!!!!!!!!!!