RE:RE:Div safety
divime1 wrote: Many companies have said they will cut Capx before dividends . No drilling in the 2 nd quarter until late May and June .
4 new Clearwater wells came on production in late March
In the first quarter there were capital expenditures of $25.3 million and dividends of $28.7 million .
WCS differentials averaged almost US$25/bbl in the first quarter and it is now below $ 13 .
WTI average price for 1 st quarter was $76.24
WTI average price so far this quarter is $ 76.74
https://ca.investing.com/commodities/crude-oil-historical-data
Adding on to this, they had a Free Cash Flow of $28.8 million...
If you remove the CAPEX, theoretically they could have payed an 11.5 cent dividend... or like 9 cents with no increase in bank debt...
The dividend is safe, it's just a rough quarter to see on paper after a long streak of things moving in a positive direction... The Company is in great shape, just the numbers look rough this quarter.
I for one, thought the year end and this quarter we're going to look a lot better than both were, I loaded up on shares at the end of the year thinking we were gonna see a dividend of 7 cents payout atleast after this report (which they obviously could do), so I over hyped it on myself, but I also expected $80 oil going forward and we have had the 2 dips now. Still a solid outlook, just taking a hot one that I didn't expect. Also it looks likely 5-10 put contracts (6.75 and 7) I wrote for end of this month (and maybe 5 next month, $7) looks like I'll have to take on the shares which I wasn't expecting, but it does increase my position and really adds to my portfolio income @ 11% yeilds