TSX:HSE.PR.B - Post by User
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Olympicon Jun 05, 2017 2:19pm
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Post# 26325765
What does a Sustainable Dividend look like for HSE?
What does a Sustainable Dividend look like for HSE?At the investor day there were key assumptions on the future price of oil (e.g. some slides use $50/bbl) and, while maintaining a caveat that dividends are a board decision, management did signal in the Q&A that there is room for both sustainable capex and a cash dividend. Management clearly signaled a desire to reinstate a 'sustainable' dividend and suggested in todays market not to expect the same amount as the 2015 dividend.
Since investor day several analysts have commented and reaffirmed their investment positions. Credit Suisse has suggested that a 2.5% cash dividend yield would cost $400 million annually, TD suggests a sustainable oil price of $53-55/bbl is key for dividend reinstatement, whereas others are silent.
Any insight or comment?