the buyback was a bluff to get the stock up.
it did not work.
I said it at the time
peyto had NO MONEY for a buyback.
you don't buyback stock when you have
bad debt ratios and investors think you
are over extended and want you to reduce leverage.
that would be the LAST thing you would do.
I said I would ASTONISHED if they bought back a single share.
In addition, I said at the time that peyto would begin a
search for Liquids Rich assets outside their "comfort zone".
That has STARTED
you don't buyback stock when you need to reduce debt
AND change your business model toward drilling expensive
more liquids rich wells. At a time when you have LIMITED liquid
rich targets in your existing land base.
btw, if the stock was "reeling" back in decemeber 2017
what is it doing NOW?
it is telling that they announced their dividend cut and "buyback"
on jan 11 when the stock was over$13. and they have yet to buy
a SINGLE share back.
investors need to know the FOLLOWING.
the only reason this company is generating any free cash at all this year
is because they are letting production fall by cutting back INVESTMENT
in the business.
You can't serve TWO MASTERS.
this is not your Father's Peyto any longer.
if you want the "romanticized" version of what peyto management does
and why, we have a poster "for that". A movie about this version of
what has happened to Peyto would be exciting and breathless....
if you want the unvarnished truth. We also have a poster for that....