I need to see real growth in metrics like customer acquisition and trading volume before making a deeper commitment. From what I can tell, the news about EDXM will only be positive for Coinbase if it helps to expand the pie for the crypto industry as a whole. That's right -- they think these 10 stocks are even better buys. Independent nature of EDXM would also restrain the firm from the possibility of conflicts of interest. EDXM needed to prove its utility to stay relevant within the crypto space though. For now, I'm taking a wait-and-see backed crypto exchange with Coinbase. Meanwhile, the EDX exchange would work to accommodate both private and institutional investors.
Increased rail capacity to the USGC should also limit the impact. Adequate Liquidity, Maturity Runway: In July , MEG amended and restated its revolving credit facility and its letter of credit facility by extending each facility by 2. The revolver was reduced from a USD1.
Despite the reduction in liquidity from the smaller revolver, management has no plans to draw on the revolver. Fitch is comfortable with the liquidity given cash was at CAD million as of Sept. Pro forma for this transaction, there are no debt maturities until March In addition, MEG has no near-term financing risk, is not expected to borrow off of its CAD million revolver any time soon, and has a covenant-lite revolver that is not subject to a borrowing base redetermination.
Offsetting considerations include low diversification, given that MEG is essentially a single-play oil sands producer, and significant exposure to volatile WTI-WCS price differentials, given the lack of integration, particularly in relation to larger Canadian oil sands operators such as Suncor Energy and Canadian Natural Resources Limited. Despite its lack of diversification, MEG does have substantial proved and probable reserves and has the ability to greatly expand capacity if industry conditions are favorable.
The company also has a CAD million letter of credit facility. Both facilities mature on July 30, , although the maturity will spring back to 91 days prior to the maturity date of certain material debt if such debt has not been repaid or refinanced prior to such date. Although the next maturity is not until , MEG's debt is callable, and Fitch anticipates the company will apply FCF proceeds to calling the notes.
The proposed refinancing to redeem the senior notes should provide MEG with an ample maturity runway. Fitch also adjusts for reduced production from its base case to reflect reductions in capex under a stressed price environment. An EV multiple of 4.
The choice of this multiple considered the following factors: --The historical bankruptcy case study exit multiples for peer companies ranged from 2. This is offset by the moderate production size, low SOR metrics, and improving transportation alternatives for its production. In addition, the multiple reflects the relatively higher proved reserves that reduces resource and volumetric risks and provides for longer-term cash flow support despite shorter-term market impacts. Liquidation Approach The liquidation estimate reflects Fitch's view of the value of balance sheet assets that can be realized in sale or liquidation processes conducted during a bankruptcy or insolvency proceeding and distributed to creditors.
That asset was sold for USD2. After including accounts receivable and inventory and adjusting for foreign exchange rates, the liquidation value was CAD3. The revolver is assumed to be fully drawn upon default. Leverage creates additional risk and loss exposure. Before you decide to trade foreign exchange, carefully consider your investment objectives, experience level, and risk tolerance.
You could lose some or all your initial investment; do not invest money that you cannot afford to lose. Educate yourself on the risks associated with foreign exchange trading and seek advice from an independent financial or tax advisor if you have any questions. Clients and prospects are advised to carefully consider the opinions and analysis offered in the blogs or other information sources in the context of the client or prospect's individual analysis and decision making.
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Abstract Test Suite Details on the tests performed are available in the abstract test suite. Release Notes.
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