RE: Bebeto27 Sep 2023 22:39
Well a business needs to meet it's cost of capital, if the debt load is this oversized, its hard to right size the capital structure by addressing earnings alone and not right sizing the capital structure.
Beyond that, its not like the earnings are purely a function of the gas price, there is a lot of volatility in earnings here from a purely operational perspective (i.e. can you actually extract set gas at economic rates). So yes there are lots of other factors at play here than the gas price.
Its hard to see equity value here when the bonds are so far out of the money and the 29th Sept payment looms over the company which if unpaid, would put the ball in bondholder's court to realise value. We'll see what happens come Friday. I wrote about the company from a 'credit perspective' back when the shares were at 4pence: https://www.europeanhighyield.online/?status/102-102-1688742406/