We would love to hear your thoughts about our site and services, please take our survey here.
Actually, I think marginal producers will be starved of financing, meaning perhaps no large increases in oil supply.
Since they made +-$1.7b incremental cash(On Q1) operationally and didn’t have to invest +-$2b in W/C build and carried over $1.2b from Q1/Q2 I assume their excess superfluous cash if around somewhere greater then $1B
$40M a day seemed to do the trick last time, and several days they didnt even buy.
Last time it lasted 15 trading days. Will it last 45 trading days, thats almost a quarter !
Will the buyback be $1B or $1.5B ?
In Q1 BP bought under ÂŁ3.10. In Q2 when they have more firepower will they stick to ÂŁ3.10 ?
Also consider that IRC proably currently counts for about 1/3 of POG's enterprise value.
Lawrence,
you might be correct here, because the Bondholders will be senior debt, having first call on IRC. This might be what’s holding up the sale. They need agreement from the bondholders. Why would they give up an asset they have as security for nothing ?
Maybe this is all so that they can move forward with the IRC sale.
Copper3,
they are attempting to buyback $200m bonds early, by offering and unpaid interest to date, plus 5.5%.
From the holder’s perspective:
Holders could retain these and earn 8.125% until Nov 2022 , but then they need to consider opportunity cost as the cash could be invested elsewhere(Banks are a good investment at the moment> 8.125% return p.a. ) and the risk that POG can’t refinance in 15 months.
From POG’s perspective
we presume they have another Gazprom bank line of credit cheaper then or equaly to 8.125% p.a limited to $200m. This could probably be repaid at will over the next few years which might be their objective.
They also don’t have to try and get $500m bond refinancing meaning it would be easier to just ask for $300m in Nov 2022.
They will still have $500m debt just structured differently, with maybe a small saving and the flexibility to pay off some of it.
can’t agree more L3Trader, they must believe we are children. There are many reasons POG could use to not complete, but they are choosing to do this.
The lie is that it is legally binding, they know that it is not.
The company is basically telling the investors a direct lie
If this where not true they would have to account for the sale over a year ago when the letters of intent where signed.
Rband,
normally completion takes place when consideration is paid. Many transactions have datarooms full of signed agreements but fall over at 1 minute to midnight because they are not legally completed until consideration is paid and accepted and the assets transferred. I don’t believe there is a “mythical legally binding” agreement that breaks this principal, but I am sure that to progress this, has been a decision by the current board.
Toothless
Since POG have a long history of lying to investors, I tend to believe Bloomberg’s version of events.
There really is no such thing as binding until the final sale and purchase agreement is signed and completion takes place. Even then many companies pull out of transactions. POG are speaking nonsense.
KRSS yes they will receive a share of profits at interim but that is a purely paper excercise, no cash, it might as well be clubcard points.
Retired banker,
I get the same number 150koz of 3d party and 450oz of own at $1800 equals 40p
Seems shareholders aren't quite as dumb as they first appear