RE:Remember the big picture
Companies calculations were based on $80 per barrel price. During second quarter price remained above $100 per barrel.
After second quater results on 27th July PE ratio will further go down. Currently PE ratio is 1.5, show me a single energy company with lower PE ratio, paying dividend and has 1.5 billion ($4.70 EPS) cashflow.
CPG is firing on all four cylinders.
1. Good cash flow of approx 1.5 billion a year.
2. Debt remaining 1.8 billion at the end of 31 March 2022(can be paid of in 15-18 months) debt free in 2023 as they are paying down 80% of cashflow towards debt or approximately $90-100 million dollars a month.
3. Hedges will be only 5% left by year end
4. 150 million dollar share buyback @ 20 million dollars per month
5. Dividend payments approx 110-120 million dollars (10% of cashflow) will increase soon
6. 10 billion dollars tax loss available. No tax to be paid for few years.
7. 2 billion dollars credit line (unused).
8. Share count reduced by 13.5 million shares by April end
If oil price continues above 100 dollars average it will be a win win situation
sitting like a lame duck target for take over