RE:SGY bank debt inching up
In Q3 the bank debt increased by $25.826m
Dividends paid were $16.59m
Capex was $17.7m. $11.6m of that was for drilling 5 wells
NCIB was $1.794m
We can debate until the cows come home whether they borrowed for some of the Capex, NCIB or Dividends.
The bottom line is that due to the persistently low Oil price they were not able to stay within their stated goal of a 100% or less all-in POR.
Something had to give. The Dividend and to a lessor extent the NCIB are the obvious choices.
It looks like the Oil price will be under pressure for some time yet or not. Unlike in the past whenever the tensions in the Middle East heat up the Oil market has been shrugging it off “Same Stuff – Different Day”. That could change or not. The price of Oil will increase substantially at some point in the future. Just how soon, how much and why is impossible to predict at this point.
For anybody that wants to be invested in the Canadian Oil Industry in my opinion Surge is a better choice than most. In the near term we can expect quite a bit of volatility but in the mid to long term Surge should do quite well.
As Always; Do Your Own Due Diligence; It’s Your Money !!