RE:Whitecap resources - The Bull has left the barnWild, agreed debt to zero and flow debt fcf to dividend while doing 10% buybacks per year.
You also picked up on what most miss. Buybacks reduces dividend payments, which gives you more money for debt/buybacks...rinse/repeat.
Just like paying debt saves on interest...buybacks save on that dividend payment.
Also what people miss is that the block trade was a result of an outfit accumulating on the market. WCP performance since they announced the NCIB bump has outperformed...they buy these blocks from someone....remember that....and those people are getting it from the market.
Great things ahead for WCP
Holding long and strong through June 30, 2023
Keep those buybacks going and ZERO debt!
Wildfury wrote:
With the news release today, Whitecap repurchased millions of shares through large block trades for cancellation, great news. By this time next year the they will have vertualy no debt, less shares on the open market with 50% of the FCF designated to dividends. They also stated that the cancellation of the shares represents over $10 million in dividend savings and strengthens the on going dividend program. This is fantastic news for the longs and don't worry about the SP being down today, it was just part of doing business. With the April 28th 2022 first quarter results coming rapidly, WTI trading over $100, Nat gas over $5.50, SPR draining by the millions weekly,API draw continuing, summer driving season approaching, airlines ramping up flights, what's not to get excited about. This stock should reach new highs of $12-$13 by early May 2022, fingers crossed.