RE:RE:RE:RE:RE:RE:Q3 report not as good...dividend in mid 2022 and not nowOh I am factoring in CJ getting better results in the future and I am not saying CJ business model isnt viable but I am talking valuation. Everyone is going to have good numbers.
At 166 million shares when fully diluted....even a 50 cent divy is 83 million dollars.
Puts it itno context on potential upside.
Kontrary wrote: I think it's worth remembering that it's only been nine months since WTI passed the US$55 mark. CJ started off the year overburdened with bank-enforced hedges that have taken at least half of the year to wind down. Realistically, the company has just started to make money in this past quarter. At this point I'm content to see them pay down bank debt over the next 2 or 3 quarters instead of turning on the dividend taps when they still have a lot of work to do on the balance sheet.
Looking at the Corporate presentation that they just released, they've put a lot of thought into their future dividend strategy at various pricing scenarios. They've set some tangible targets, which means that they've set expectations that they'll be measured against.
As for CAPEX, you can fund a lot of future CAPEX from internally-generated cash-flow if you're not paying down debt or spending $10M annually on debt servicing charges.
kavern23 wrote: And do people ever think that the low capex spend companies like Gear and CJ in 2021...what will this do their capex in 2023 and on.
You push more spending into the futre on capex side.
At 80 wti and 5 ng...spending lots on drilling right now is a good thing.