What are you trying to illustrate? e.g, re the covenant on EBITDAX ... Total Debt ($365M) - $20M = $345M (best case) To pass covenant it must be 3.5x or less .... means min EBITDAX = $98.6M In a worst case scenario require EBITDAX = $104.3M
SNDE had adjusted EBITDAX of $101.4M for 9 mths YTD ... but covenant is not adjusted EBITDAX. Even so they should be OK on this one for the 2019 full year
Where I think there is trouble potentially is the Current Ratio ... they have $58.6M unused on the BB but that is likely to evaporate upon redetermination.
Look at the Q3 Balance sheet .... without that unused portion they breach .... they can withstand about $30M reduction by my rough guess. Same problem as LONE and PVAC I believe but I could (easily) be off the mark.
Anyway, waiver wouldn't be difficult to get I don't think. Bankers don't want to be oilmen.
SEA Price at posting:
16.5¢ Sentiment: Hold Disclosure: Held
