This week, Forest Oil (FST) released several important sets of financial and operating information. Forest unveiled its 2014 budget and initiated operating guidance for next year. The company also provided pro forma financials that reflect asset divestitures and debt repayments completed since the beginning of the year and disclosed estimates of certain transaction costs associated with its recent Texas Panhandle sale.
Forest is guiding to strong oil production growth in 2014. However, the new information released by the company reinforces a concern that strategic challenges are far from over.
While Forest has secured sufficient liquidity to fund a very active drilling program in 2014, pro forma long-term debt of $800 million is high relative to internal...
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