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Politics : High Tolerance Plasticity -- Ignore unavailable to you. Want to Upgrade?


To: Second_Titan who wrote (7067)8/27/2001 11:39:57 AM
From: jim_p  Read Replies (1) | Respond to of 23153
 
Que,

I think you're safe. As of 6/30, KWK had $28.4MM in borrowing capacity/cash left and with the current cap-x budget they are burning through it pretty fast.

My bet is they will be dead broke sometime in 4Q. If the equity markets don't open up they will be history.

With KWK's current hedges, at $2.50 NG, cash flow falls 41%. With NG at $2.00, cash flow falls 66%.

Leverage is a killer in a declining market.

Jim