RE: Q2 Cash flow plus Other .
Namsoc,
Thanks for your thoughts. Paraphrasing what you stated is that as a result of very high capex for the 1.5 yrs that in order to maintain the current dividend of $.35/share/ quarter the company will have to increase debt by ~$700mm. I pulled this quote from COS's Q1 2012 quarterly report:
"we have the liquidity to fund our major capital projects
over the next few years while maintaining a strong balance sheet and dividend."
As you point out the company had net debt of a mere $99 million dollars at the end of Q1-2012. The company has stated in July they intend to increase that to between $1-$2 billion, more narrowly $1.5 billion, as the target net debt levels. This would seem to all but assure the dividend will be maintained. Hopefully they can give the market more comfort around the dividend with Q2 results.
Further with improving operational results and narrowing spreads between SCO and WTI and longer-term WTI and Brent and substantially declining capex beginning as early as 2014 and dropping precipitously in 2015 the company should once again become a dividend machine.
What are your expectations for cash flow per share after capex in 2015?