About and hour of Q and A. Good questions and straightforward answers. The call does reinforce my conviction that this is a deep value proposition and a good speculative play in the canadian oil space. They made it very clear that unless something chnages drastically, the dividend for 2013 is safe, and that they project that it gets even safer for 2014 and 2015.
They do not feel they are in any trouble on the debt side, and that they have lots of options. Because there is no pressure, they can be opportunistic - sell assets only if full value realized, and continue to buy assets if they can get them at a deep discount. Total debt will increase by about $100 million from Dec 2012 to Dec 2013. Most of that comes in Q1 so has already occurred. They will be free cash neutral or positive 2H 2013.
They are also getting about $10 a barrel more than projected right now. They had projected $90 with a 10% differential. Right now they are getting $93 to 95 with maybe a 5-8 % differential. So every day they are doing better than their projections.