RE:RE:Dividend effectCPG had the framework laid out, but the timeline bumped up. The announced debt level and dividend increase were expected Q3 but happened in Q2. The clarity of the return framework definitely helped, but so did the timeline acceleration.
JohnnyDoe wrote: dandu1924 wrote: WOW. for example today CPG up over 14% with their news yesterday ( increasing their dividend ). NOW, can you imagine WHEN BTE will release the news about the dividend, check your belt, that will be unbelievable, going to the MARS planet.
I think it was more than the dividend increase. CPG announced a return of capital framework that lays out shareholder returns over the coming couple of years. I've been advocating that Baytex do this in the Q2 release later this month. Q2 will be a bonanza quarter and at 100 oil they likely hit the 800 target by end of Q3 or early Q4. Then what? I'd like to see a plan for returns that takes us to zero debt that establishes fcf to dividends and fcf to buybacks.
I think the market liked the clarity that CPG announced as much as the dividend increase. If oil holds 100 for a year they'll all be near debt free, but some clarity on the debt would be great.