Nat Bank Forecasts Dividend Nat Bank reports that Paul is now leaving on the road to sell the dividend model. Their expectation is a 30 cent annual dividend (7% on current values). They say to get there, the company will cut back on development to allow declines to fall to high 20%'s and exit production to around 8,900 boe/d. They feel that with these adjustments and saved capex, debt to cf will drop to 1.5 and total payout will be 88% and ogoing growth at 5%.
"Outperform rating & $7.00 target. We look forward to more colour on the new strategy in the coming weeks and would advocate buying ahead of the news. From a valuation standpoint we believe SGY is poised to be one of the top re-rate candidates this year."