RE:Thoughts to increase shareholder value Shareholder returns are the ticket to make this a best in class yielding stock. Once they are debt free, they can be extravagant. For example buying back 5 million shares per year is about 3.5% of the float so an accreditive 3.5% yield for shareholders. Add in $.10/month dividend is another 12% making the return 15%+ and there is still lots of fcf to do a special dividend.
EN is encouraging companies to employ a 100% return of fcf strategy- somebody that is debt free will likely do that next year and get early mover benefits and Cardinal is a good candidate. What would a 15%+ yield do to the share price??
At $110 oil, FCF will be over $400 million next year for a debt free CJ. If they return 75% or $300 million to shareholders that would be about $2/share, which is over 20% yield making them best in class. Would that drive the share price to $20 as the yield would still be 10%? I don't know but I'd like to find out!!