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Pengrowth Energy Corporation Message Board

  • idccnokia2006 idccnokia2006 May 20, 2014 1:59 PM Flag

    To be fair, there is something not talked about with PGH. Future debt.

    I had read that seeking alpha story "buy the dip". They had a chart, probably from pengrowth, that showed the cash flow growth. On that chart, it showed pgh will be tapping into their 1.2 billion credit line, and by 2017 will have borrowed 800 Million from it. (by 2018 it will be down to 450 million).
    Now with all the cash flow, and all the reduced well drilling, and reduced asset purchases, its kinda scary to see that pgh will have to be borrowing this kind of money.
    I am long. But I don't blame some of the people for saying "pgh is always saying their best times are 2 years out."
    If our best times are 2, 3, 4 years out, then why so much debt ? Why won't revs from Lindberg I be enough to fund phase II.
    And when will we final say, "PGH is in their sweet spot. We have things to do for the future, but we are making tons of money now." Why is it pgh best times are "always down the road"

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    • Page 15 of the 2104 presentation chart lays out their plan. One can see them calling for 800 of the 1 billion to be drawn in 2017 and decreasing there after. Note ebitda, if predicted to max out at 2.5 the preceeding year, 2016.
      T

    • OBVIOUS, you don't know about PGH. DO YOUR RESEARCH!

      Sentiment: Strong Buy

    • idccnokia2006,

      You should do more research before you post erroneous information on message boards:

      Pengrowth has stated time and time again that Lindbergh phase 2 and 3 will be 100% self funding.

      The company has a graft in one of their presentations shown that debt will be as follows: 2.8B in 2014, 2.4B in 2015, 2.5B in 2016, 2.1B in 2017, and 2.1B in 2018.

      From 2014 to 2018 cash flow is projected to increase from $1.00 to $2.38 per share with essentially the same debt.

      Sentiment: Strong Buy

      • 1 Reply to hardmetalman1
      • HM
        From their presentation Macrh 2014 page 17, shows total debt increasing 250 million from 2013... 2015.

        From the last CC
        Derek Evans - President and CEO
        Kyle, it’s Derek. We have not generated [AFE] quality estimate for Phase 2 yet. I can tell you that we probably pre-invested somewhere in the neighborhood of $30 million, now in Phase 1 cost here to -- for Phase 2, it’s too early to tell you whether we think the costs are going to go up on Phase 2 or Phase 3 at this time, so we just haven’t done the work. And guess I want to reiterate that we are dealing with cost that we estimated back in November of 2012.

        So they haven't even established a firm build budget for the next phase, so I would say it's premature to make comments on debt, other than what they have posted.
        T

    • idccnokia~~~~

      Future Debt based on what? A chart you represent as "probably"?
      What does that mean?

      I cannot follow your post even slightly. But let me get this right, just as revenue is reported by the company to kick in and grow, you post to assert they are going to be forced to borrow ?? And you post this while the
      company still has around 500 million in the bank to complete the L project?

      Your post is puzzle, as if pieces from different puzzles mixed into one..

 
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