Thread by @RKBtoo

.@ABDanielleSmith's #RStarScam pet Kris Kinnear is pushing #RoyaltyBunk:

"These benchmarks combined have made capital availability to #oilandgas producers next to extinct."

In reality, it's lack of profit in #abpoli o&g since '09 & insolvency since '05:

saenetwork.ca/royal-line-of-…

Accidental truth:

"a co’s income changing month-month...is affected as much if not [>prices+demand than] by production decline + operational failure."

See:
economicsfromthetopdown.com/2022/02/10/a-c…
+
economicsfromthetopdown.com/2022/09/24/how…

More accidental truth:

"In a price environment such as Western #cdnpoli’s [in 2021],for many #abpoli #oilandgas producers...“breakeven”now either requires low capital ops yielding production increase, or requires a significant commodity price increase."
[i.e. they're #insolvent]

"During this time most institutional bank lines were reduced or closed and sourcing equity investment was extremely difficult. This void of capital availability was filled by; family and friends equity investment or and in most cases, high interest loans from #PredatoryLenders."

"These high interest short term loans cannibalized cash flows from #abpoli #oilandgas producers. ...high ranking security was placed on the co & in many cases personal guarantees from officers w/i the co was required."

All true. Bankers are the worst.

What does all that mean?

Unprofitable & insolvent #abpoli #oilandgas producers can't borrow more money b/c they don't have any profits to repay any loans.

.@ABDanielleSmith wants #ableg to secure loans to these #BankruptcyForProfit ponzies.

#WhoWouldDoThisToThemselves? No one.