- FCF deficit for the company is temporary. Once capital spending winds down and NATO contributes to EBITDA, FCF will move into surplus territory in subsequent years beyond 2015.
- Worst case scenario, EBITDA from chemical divisions along with current credit facility can absorb any remaining capital requirements attributed to NATO, maintain dividend, and stay within debt covenants.
- With a 25% project contingency, its unlikely NATO will require additional capital to complete the project. Currently, there is no draw on contingency funds or surprises to current revised costs.
- Dividend cut is unlikely. Reflects a long term solution to a short term problem. Their credit facility is the appropriate vehicle to address short term liquidity. Financing already in place.
- With signing of new contracts, hiring of a new CEO, and progress on NATO, there are upside catalysts that will drive share price higher in the near term.