Lightstream's Dividend

[dan_s]

You can test this for yourself by downloading the Lightstream forecast model from the website.

In the Lightstream forecast model I changed the oil price to Cdn$80/bbl and the natural gas price to Cdn$3.00/mcf and it shows Lightstream still generating over $100 million cash flow from operations per quarter. That should be enough to cover a capital program in 2015 that will maintain current production levels (~37,000 boepd with ~80% crude oil) and continue to pay the dividends.

Lightstream has 22% of their 2015 forecast oil production hedged with collars that have US$80.70/bbl floors.

It is very important to note that Lightstream sells all of its production in Canadian dollars and pays dividends in Canadian dollars. My forecast model is also in Canadian dollars.

IMO the dividend is safe, unless WTI drops a lot lower (below $70/bbl).

[dan_s]

An updated Net Income & Cash Flow Forecast model for Lightstream has been posted under the Watch List Tab.