05:51:03 EDT Fri 29 Mar 2024
Enter Symbol
or Name
USA
CA



Energy Summary for Feb. 24, 2015

2015-02-24 19:35 ET - Market Summary

This item is part of Stockwatch's value added news feed and is only available to Stockwatch subscribers.

Here is a sample of this item:

by Stockwatch Business Reporter

West Texas Intermediate crude for April delivery lost 17 cents to $49.28 on the New York Merc, while Brent for April lost 24 cents to $58.66 (all figures in this para U.S.). Western Canadian Select traded at a discount of $13.60 to WTI ($35.68), down from a discount of $13.20. Natural gas for March added 2.3 cents to $2.90. The TSX energy index lost a fraction to close at 225.39.

John Wright's Lightstream Resources Ltd. (LTS) lost a cent to $1.21 on 2.69 million shares, slowing if not quite stemming its recent flow of red. Yesterday it lost 10 cents, and on Friday it lost 14 cents, after releasing its year-end 2014 reserves and pruning its first-half 2015 guidance. Proven plus probable (2P) reserves came to 161.2 million barrels of oil equivalent at Dec. 31, 2014, down from 200.2 million a year earlier. Some of the decrease reflects production and dispositions (normal enough), but one disappointing culprit was an 18.5-million-barrel negative revision (meaning the reservoir was worse than the evaluator thought, especially at today's low oil prices), mainly in the Cardium. Cardium 2P reserves fell to 79 million barrels from 95.4 million. By comparison, the Bakken reserves and the Alberta/B.C. reserves were down only slightly. Lightstream is hoping to sell its Bakken division within 12 to 24 months in order to improve its finances. It had $1.56-billion in debt as of Sept. 30 and warned last month that it might breach its debt-to-EBITDA covenant before the end of the year. Also last month, it suspended its 1.5-cent monthly dividend (which was previously lowered from four cents in mid-December) and set a $95-million budget for the first half of 2015. In last Friday's update, it shaved $20-million from that budget. Such savings, as well as the proceeds from minor asset sales, are going toward the balance sheet. The sale of the major Bakken division would wipe out of much of the debt, although it would also remove about one-third of Lightstream's production and over half of its free cash flow.

The remainder is available to Stockwatch subscribers.
Sign-up for a FREE 30-day Stockwatch subscription and SEE NO ADS

© 2024 Canjex Publishing Ltd. All rights reserved.


Reader Comments - Comments are open to paying subscribers of Stockwatch and unmoderated, although libelous remarks, obscene language and impersonations may be deleted. Opinions expressed do not necessarily reflect the views of Stockwatch.
For information regarding Canadian libel law, please view the University of Ottawa's FAQ regarding Defamation and SLAPPs.


Comments for this item are closed