- The current market value of the company is below the cash balance.
- The company has enough current assets to pay all debt and have current assets left over.
- The cash balance alone can pay the long-term debt while still retaining a reasonable working capital amount.
- Cash flow is erratic and that is the reason for the large cash balance and most of the long-term debt.
- Egypt is stable and very supportive of the oil and gas industry because it earns hard currency for the country through exporting the production.
For further details see:
TransGlobe Energy: Clipping Coupons