While Pengrowth management is doing all it can to ensure the future survival of the company, PGH is still a risky speculation.
While Pengrowth has reduce it debt and plans to use most of it's cash flow to meet next years debt maturities, the company has had to eliminate all drilling and cut maintenance to the bone. As a result production is declining and future growth is on the back burner.
The company does not control it's own destiny because it is totally dependent upon higher crude oil prices and the construction of LNG export facilities by other companies to survive and thrive. So far neither has happened and time is not on Pengrowth's side.
What can I say ... I'm not always right, but I'm never wrong!
It must be difficult being the perfect person with the narcissistic attitude.
Why did management issue 3,000,000 preferred shares with a coupon rate of 6.875%? In this very low interest rate environment that's a fortune and a rate that the company will be stuck with for a very long time.
Pengrowth will not survive if oil prices remain this low into the second half of 2017, and yesterday the International Energy Agency announced that it believes there will be at least another two years of low prices.
If wouldn't anticipate any new hedges with energy prices this low. If were lucky, management may of consummated an asset sale or two and used the proceeds to pay down some debt. Otherwise, it's steady as she goes until we run out of hedges or energy prices rise substantially. Who knows how that going to work out?
Why do you spend so much time on this board? You obviously have lost a lot of money in this stock at one time or another and are simply sticking around to harass others to massage your ego. Get a life. Get over it. Write off your losses and move on. Were all tired of your negative attitude.
Two things I need to tell you.
First, you talk about 12,000 dollars like it's a lot of money, and second, you'll go to hell for lying.
energ_one is making the point that you are being a hypocrite.
After perusing Pengrowth’s 2016 investor day presentation again, it is obvious to me that the company can survive this year on a bare bones budget providing their $30 average boe price assumption materializes. However, it is also obvious that 2017 is an entirely different story.
Beginning in January 2017 Pengrowth has only 64 million in hedges left to help sustain even a limited amount of free cash flow. That will be $355 million less than was available in 2016. By perusing the debt to covenants chart in the aforementioned presentation, one can readily see that unless oil prices rise substantially before the beginning of 2017, each of the four EBITDA loan covenants will be violated with or without the anticipated 2016 debt reduction. The company now has a one billion credit facility that doesn’t expire until 2019, but that credit facility is also subject to the aforementioned loan covenants. Break the covenants and the credit facility becomes unavailable.
With every passing day more of the company’s hedges are being monetized and energy prices are showing no sign of recovery. Owning this stock is simply a speculative bet that energy prices will rise in the next eleven months and that bet is becoming more of a long shot every single day.
Actually, Pengrowth will still be on the Toronto stock exchange and the pink sheets. So why spend money or a reverse split when the company is fighting to survive and thrive. Although, I am a little concerned about the timing of the thriving part of that equation.