RE:GXE will have to eliminate the dividendI don't think so just based on their monthly reporting data they appear to be at a sustainable level with regards to WTI pricing at these levels. Even a decrease in WTI pricing from here may not be as critical going forward as the WCS-WTI discount is set to narrow with the commisioning of the TMX pipeline.
https://www.spglobal.com/commodityinsights/en/market-insights/latest-news/oil/110223-wcs-crude-discount-to-narrow-after-tmx-pipeline-expansion-canadian-natural They are also increasing production slightly which should add to FFO.
The next monthly report should show a decrease in debt and this blip of a commodity price drop will not drop the average WTI price much for the report after that. As long as debt is not being added at an unsustainable rate I think they will weather this commodity price storm with an intact dividend and honestly this is the level they should have introduced the dividend at and then used the excess FCF for buybacks but lesson learned and now buybacks will have to wait until debt is reduced to more palatable levels again (quite frankly it is still pretty low givien its D/E ratio). BTW its payout ratio is only 66%...I don't have a problem with that.
GLTA
tylerreddick wrote: They simply aren't making enough to pay it with WCS oil prices in the toilet.
They never should have started a dividend in the first place, just did it to prop up the share price, and that backfired.