RE:RE:RE:Dividend increase - how about asking IR? I agree that the attempts to keep oil prices low are a stromg headwind. Where we disagree is probably with the use of the word artificial...sort of. It seems the the global price of oil has been arificial since the creation of OPEC.
That being said it seems we have an ally in OPEC as they appear to want to keep the global oil price in the $80-100 range unless you wanted oil to drift higher than $100 which just seems to exacerbate inflation.
If the world works to Keep oil in the $80 to $100 range it seems to work for everbody, consumers, producers and investors alike. If that is artificial then so be it because if oil is allowed to flood the market naturally then $40-60 oil is probably the result and that only really works for the lowest cost producers and of course consumers but I will have to pull my investing capital out of O&G.
Luckily I expect the former to continue. A solution that works for everbody works for the market as a whole.
The question now is: how low does it fall before it innevitably climbs back up?
GLTY and all
JohnnyDoe wrote: Quintessential1 wrote: IR may clarrify the existing dividend situation wrt sustainability at these WTI oil pirices but I don't think they can confirm an increase. I really don't think that was you intention with your post title but I am just clarrifying.
Personally I think the dividend is probably safe at these oil price levels (Management ussually bulds in a buffer). Do we really need it to rise? It is over 10%.
With the SPR refilling and various other tailwinds pushing the oil price higher this looks like a great place to park some cash for a while.
The only real headwind I see is the Chevron Venezuala deal.
Any ideas on how soon and how much oil they can bring to the global market?
GLTA
JohnnyDoe wrote: There seems to be a lot of back and forth about the dividend. The price of oil has dropped, inflation is running hot in the oil patch and interest rates are up. There's a lot of hot takes on the board, some of which may lead to false expectations.
If you want to better understand the situation wrt the dividend and its stability, why not ask IR? Ask a credible question, you'll get a credible answer.
I made the post because of things I read on the board regarding increases in the dividend. I generally don't like when false expectations are set on stocks where I have a considerable investment so when I see that type of thing, I throw my 2 cents in.
IR will comment on the sustainability of the dividend and you are correct that they cannot comment on potential future increases.
The situation in Venezuela is a mess. I consider the artificial attempts to keep oil low the biggest headwind of them all.