RE:RE:RE:RE:BTE Is CATCHING UP To ATH: WCS Is ALMOST USD 70/Bbl.Maxmoe wrote: True Dat, but ATH already has ZERO debt so 100% of that cash flow can go toward growth/buybacks/dividends. Too few investors and directors understand that a company doesn't need to use cash flow to pay interest on the debt, they also have to repay the principle, the nut. Not just the juice. Trump still owes the whole 550 million, not just the $150 he must put up as the bond. Imagine if they never made that acquisition but instead spent the last 2 years paying debt down to zero and or making huge stock buybacks and/or paid a big onetime divy ?!? I'd say I'd still own it and it would be over $10. So what will they buy next? Hope it isn't ATH. LOL.
Agree to your points , but isnt interest tax deductible as a business expense and real value of debt falls with higher inflation as assets get inflated . I am not a smart accountant like you but just crunching numbers , the FCF per share increased 20% after the deal . Mr Market is always right ,so i cannot argue with you Max . To me the acquistion looks accretive , yes it did push down the shareholder returns down by a few years but long term we have a stable good company rather than old Baytex with non operated EF acreage and low inventory Canadian side . I think the CEO is sprucing this up for a possible sale to a big major in the EF Texas (Read Marathon/Devon) once the balance sheet is cleaned up. This might be the best case exit scenario for Juniper agani . Debt pushed after 2030 , Good EF inventory , Buybacks started , so things look good .Fingers crossed