Panaco Corp (PANA) Message Board

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Gold/Mining/Energy : Panaco Corp (PANA)

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To: Jeff who wrote (94)	11/12/2000 10:37:46 AM
From: Ed Ajootian	Read Replies (1) of 115

For 3Q, PNO's EBITDA/Interest ratio was about 4.3:1! The company obviously paid down millions of $$$$ of its bank line since its interest expense went down 400K from what it was in 2Q. The folks that had been steering clear of this company because it was over-levered will now be piling into this stock. It will a matter of a only a few more quarters before they completely pay down the line, leaving only $100 M in debt. They will have so much $$$$ they will not know what to do with it. Cash flow is already running at pace which is about double their drilling budget. And this is before counting additional production coming on line (and about to come on line) from East Breaks 109/110. In a way, this continued rig shortage is a blessing in disguise, forcing the company to first get its financial house in order before shooting its wad drilling more holes in the ground. Also, having Carl's boys running the show, we know we will not get any nasty surprises concerning any stupid transaction, since all Carl wants to do now is keep a steady, boring pace going so he can collect his interest in peace.

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