Post by
highalpha1 on May 29, 2021 8:20pm
CPG and share buybacks
There is a lot of chirping on this forum about CPG management. I would like to point out that the new CEO tends to deliver on what he says. Prior to COVID, Craig B. announced NCIB of up to 7% of CPG's float. They began buying back shares with ernest and exercised about half of their maximum NCIB allotment before COVID hit and management made a subsequent announcement (March 2020) that they would be suspending to NCIB to protect the company's balance sheet.
Management is opting for NCIB rather than raising dividends to give itself maximum flexibility for its finances. Craig B. has repeated that the current NCIB will be exercised only once debt levels are at a very comfortable multiple (I am guessing about 1.5x). If WTI prices remain at the current level or higher, CPG will be trading well below 1.5x by the end of 2021. At that point, not only would the newy secured Dubernay assets be integrated into CPG's portfolio, but the balance sheet would be strong enough to raise (and sustain) a significant dividend increase as well as fulfilling the NCIB.
This post is a long way of saying that while previous management has messed up in the past, the current management is doing quite a decent job in communicating with the market as to how it intends on proceeding with enhancing shareholder value. You just have to be receptive to listening to what is being communicated.
Comment by
Bpultra on May 30, 2021 11:34am
===================== Ok my ears were wide open last year.... they said they would buy back shares..... they DID NOT.... but they quietly they issued warrants ... and even exercised some of them... I guess when they whisper not everyone hears it.... chirp chirp
Comment by
Bpultra on May 30, 2021 11:39am
Compensation vs Earnings: Craig's compensation has increased whilst the company is unprofitable. https://simplywall.st/stocks/ca/energy/tsx-cpg/crescent-point-energy-shares#management
Comment by
Bpultra on May 30, 2021 11:42am
============= Sometimes you need to close your ears and open your eyes.. Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 9.9%.
Comment by
Bpultra on May 30, 2021 11:45am
================== How has Crescent Point Energy performed over the past 5 years? Analysis Checks 0/6 -30.8% Historical annual earnings growth