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AvenEx Energy Corp AVNDF



GREY:AVNDF - Post by User

Comment by Kingscourton Feb 13, 2013 1:24am
181 Views
Post# 20979135

RE: RE: RE: RE: RE: Merger may be only option...

RE: RE: RE: RE: RE: Merger may be only option...

Joe, you are correct on the 35% - 40% dividend pay out ratio, but with the $80 to $90 million expected 12 month capital expenditures, this results in a 100%-115% overall payout ratio. In plain english this translates to a 0 - negative 15% profit, making it impossible for dividend increases, share buy backs, debt repayment, wise acquisitions (all attributes of a good company) and furthermore, leaves absolutely no margin of safety against a drop in oil and gas prices, interest rate increases, inaccurate reserve measurements, another year of poor weather conditions, and many other risks they bury in "forward looking statements". I hope commodity prices rise too, but we should not gamble on it. I believe the management teams are fully aware of this, and that this is the reason the majority of management for the two larger companies are taking their packages and walking away from this "new fantastic company" that they are so pleased to announce, while leaving the management from the smaller, more poorly run company at the helm. There are many intelligent shareholders here, and I believe if we spent a little less time bickering amongst ourselves, I think we would find that there has to be better options that do not require millions being dished out in packages. 

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