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From: Dennis Roth	7/14/2012 9:00:38 AM
	1 Recommendation of 178576

Safety in Under-Levered Balance Sheets EIA Reports 33 Bcf Fill CS Sector Review Preference for Under-Levered Balance Sheets. With the focus on balance sheet strength in the current volatile commodity price environment, we look at net debt-to-cash flow multiples for the group in 2012 and 2013 with commodity prices at the futures strip ($85.77/Bbl WTI and $2.98/MMBtu gas in 2012 and $89.00/Bbl WTI and $3.63/MMBtu in 2013). At the strip in 2013, 75% of the companies in this analysis maintain ratios below 4.0x, which is significant in that typical bank credit facility covenants normally require total leverage (net debt-to-EBITDA) to remain below 4.0x. ROSE, EXXI and BCEI screen the best in 2013 at 0.6x, 0.6x and 0.8x, respectively, while VQ at 6.4x, FST at 5.5x and PVA at 5.4x, are the most stretched in 2013. 9 pages, 10 exhibits Download available at sendspace.com