RE: RE: RE: dividend cut in 2012?cutting the dividend by 2 cents is not really going to generate enough cash to accomplish anything significant. This is why I think any cut to the dividend will also be accompanied by either a non-core asset sale or a bankline increase. With borrowing levels forecasted to be cheap for the foreseeable future and the market for oil/gas asset sales being so apparently hot, I dont think these are such horrible options. This being said, I dont want the company to get in habit of perpetually adding on to their debt levels (without production growth) or selling any assets they have near term plans for.
My fear is with the dividend cut is that it will set a precident for future cuts when any short-term snags occur.