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That wasn’t a leading question, I genuinely don’t know, only just started buying and posting to further my own understanding.
Convertibles can be paid by drawing down the RBL, but that starts to amortise at $200m every six months sticky so situation at the mo with oil prices the way they are.
Megla,
Not off the top of my head, but I bet you do. The bonds due later this year are more of a worry.
Auson, I wouldn’t be so sure about that then being deferred if it comes to it. I’m not even convinced the bond holders will roll over the 2022 bond without something that’s punitive to equity. Do you know what the next RBL redetermination is?
1 billion in credit facilities is meaningless....it just means that the banks with agree a meeting and how the courtesy of listening to what you have to say ...it doesnt mean they will actually agree anything ....or if they do..they will do it on their terms..not yours
Megla,
You are right to be concerned re the low Brent price, FCF and profitability, regarding the covenants they will most likely be deferred.
Actually given the improvements in Ghana I would not be suprised to see 2020 production at mid 80k bopd average.
What has the 1 billion in credit facilities got to do with the potential of breaching covenants? I’ll give you a tip, nothing.
Megla,
If Brent drops another few $s and you forget about the hedges, and we only produce 75kbpd not closer to 80kbpd and we don't sell any assets that are for sale.
I think Brent could test $49.93 and bounce from there hopefully.
Oil prices are not going to spend all year at these lows. Much of production is hedged. January prices were also relatively high. If anything these low prices could very well kill off US shale growth sooner than expected leading to higher prices later in the year.
They have a 1 billion credit facility stop posting drivel the free cash flow was 350 million for 2019 they posted this in jan - give me strength :-)
Better looking forward not back, FCF this year could be negative it oil prices continue to fall. If covenants are beached equity could get wiped, hopefully coronavirus is being blown out of proportion.
To put it into perspective the free cash flow for 2019 is now not far off the entire market cap.
Assets on the balance sheet are 10 billion.
Right busy in work catch you when this bounces back big time
From the rns dates 15th of jan:
million.
· Free cash flow for the full year 2019 is expected to be c.$350 million, with net debt reduced to c.$2.8 billion and gearing expected to be around 2.0 times.
Market cap is now near cash in the bank just had another top up this is ridiculous
Where you getting the FCF figure? It’s zero at the these oil prices for the year, not $350m.
So the mc has a complete disregard for the revenue/profit generated by tlw.. mc is reaching our 350m cash position.. what is management doing? They all need to be kicked out for this, unacceptable
350 million in free cash flow
Market cap now nearly 7 less than net assets
Uganda or Kenya sale farm in will see this double
More drilling to come
A large investor circling who will be adding more at this level
Producer of 80,000 bopd at very low production values
Don’t sweat the daily’s