RE:RE:RE:Spyglass declares 2.25-cent June dividend One of my accounts, which is more than 90% invested in dividend paying E&Ps has only one 'red' stock which is a looser (~10%) and that is SGL. A 15% dividend is of little help while other major holdings show gains of 35-50% and more plus 5-8% dividends.
There is nothing new in it's June presentation. This was and still is a marginal dividend model which is stuck with $300 mil. Debt, limited Capex and declining production.
Dixonville is the only core asset that supports the dividend: ~90% light oil, low decline rate. SE Alberta is of medium gravity, lot's of gas in the BOE and more than 20% decline rate. It would probably do a lot better in stronger hands with a much higher Capex.
Viking, another core asset, is a disgrace. After years of drilling (including by it's predecessor run by the same CEO) it's production is a miserable 650 boe/d.
Whether it makes sense or not, this CEO will not cut the dividend without saving face. He has little excuse so far - oil and nat gas prices are a lot higher than when he launched this co. I think, the only way out is a change in assets, a merger or a complete sale. Still long but my patience is running out.