The Best NG companyThis is a company that has the best management team and consistently over delivers on their promises.
I like that they are paying out nice dividends rather than buybacks.
Their debt is only 50% of target, and that is a couple of bond series not due until the end of the decade with an interest rate under 3%. OG companies don't get that kind rate.
The Topaz stake is worth a lot more than the debt.
They have a pretty sweet deal to LNG terminals in the gulf that will impact 2023.
They have a lot stored with PGE in California and i hope they have been unloading that this week as the prices have exceeded $50.
In this environment of even $5 and $6 gas, they will continue to pay those $2 specials and grow the company to 700,000 bopd from 500,000, just as LNG Canada starts taking a couple of bcf/day.
If the price of gas was to sink back to the 2-3 range, it will go down, as they all will. But with all the LNG expansion planned in the GULF, LNG Canada, and Europe looking to replace Russia via the US, i am comfortable prices won't crash for any lengthy period and TOU will continue to pay good dividends.
I bought in at $16 in 2020, so i like both the yield and return on my investment to date.
I don't worry about the couple dollar swings in daily price. They earn billions in cash flow and a large part of that is coming every 3 months, like clockwork, to shareholders.