How long can they hold on if price stays under 60 $ this year?sharky

This year interest payments ($82 to $88 millions) is being paid by using the reminder of the $600 millions loan (Notes). Next year they would have to use their own free cash flow or line of credit if they renegotiate the Covenant.

Two downgrades we just had will cost the CLL additional fees and higher interest rates, which will increase total interest obligation.

Partnership would cut the CLL interest in Oilsand assets by 20 to 50% . Not sure how would the CLL SP react to this option.

Bitumen prices at Hardisty recover and yesterday were quoted at about $35. Nice jump. Unfortunately higher refining margins at the beginning of the February came down to November levels dashing the hope that the MRC will help the CLL to generate good cash flow. Luke cash flow will not add much at this NG price.

(See may cash flow table at http://agoracom.com/ir/Connacher/for...

Today, after initial drop the TSX Energy Sector is on fire. Horizon ETF (HEU) is 2.7% up for the total swing of more then 15%.