Quote:
Originally Posted by Frequitude
Is anyone following MEG? Down about 35% over the last week. Textbook story of what happens when you lever up and prices go the wrong way. The highs are higher and the lows are lower. They're actually cash flow negative at current prices and will have to tap in to credit lines to service interest payments (i.e. using debt to service debt...like using one credit card to pay off another).
Whoever bends them over when they're forced to sell Access Pipeline is going to get one hell of a deal.
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On the other hand, they have an untouched credit facility that could cover them for 5 years of negative cashflow so if they hit the wall it wont be for a few more years anyways.