The Motley Fool Discussion Boards
Industry Discussions / Real Estate Inv. Trusts: REITs
|Subject: Re: OT: EEQ/EEP||Date: 2/23/2013 4:31 PM|
|Author: Valuemongeragain||Number: 73742 of 81602|
Probably most NG producers are surviving one of two ways, switching to drilling for oil or that they had little or no debt.
If they had little or no debt, they paid for their drilling a few years back and are taking depletion expense, a non-cash charge, as they produce the NG, so their cash flows can be better than their earnings.
As you mentioned hedging can help, but with NG prices so low for so long their hedging is helping a lot less than it used to.
|Copyright 1996-2017 trademark and the "Fool" logo is a trademark of The Motley Fool, Inc. Contact Us|