As in, reduce their number? Yes, no, maybe?
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Unfortunately, the prior CEO mismanaged the organization and saddled the organization with too much debt and used money that could have been used for value adding projects to pay dividends. For him at the time, that was a $250k/year pay check addition. As the CFO stated yesterday, the company needs to work toward being in a position to be eligible for a conforming loan in the next few quarters in order to be able to "refinance" some of the long term debt coming due in 2018/2019. With commodity prices sticking where they are, that's very difficult without making some tremendous changes. There are a lot of ways to make the company profitable over the next 18 months, but unfortunately some changes must be made now and this is one that can be made quickly. The others take a long time to accomplish...i.e. sales of pipeline assets and the like. While it would be wonderful that a single "good" quarter could help, at the end of the day, as the current CEO said, cash costs must be under control. The debt interest isn't going anywhere any time soon. So they need to free up cash flow to get that under control. I wish it wasn't so, but the prior CEO thought Denbury should build and operate every piece of the system. But, Denbury shouldn't own and operate pipelines and NGL facilities. Those are best left to third parties. Let them take that capital and operational risk.
no, no, and did I mention no?