Twin Butte Energy Ltd TBTEF

RE:TBE strong but 50% div cut reduces debt by $20 mill/yr

[ocean112]

A dividend cut is a bit of a shell game....if they cut the dividend by 25% - price appreciation would be capped at $0.90 - which would yield 10%.  Why buy TBE at 10% yield when you can buy Cresent Point at the same yield?

In other words - a dividend cut or increase does not increase share holder value - it just defers when shareholders get the money (ie. in the form of a dividend or share appreciation).

Yes everyone is rallying around a dividend cut - and with all metrics well under control (ie. D/CF, payout, CAPEX, etc) - I don't think a dividend cut would make much of a difference.

TBE doesn't get any respect because they do not have a substantial drilling inventory - I would say - cut the dividend - and buy up some cheap properties - THAT would increase shareholder value.