Twin Butte Energy Ltd TBTEF

RE:New 52 Week Low ---$1.06

[konzelmann]

If they bought shares, they'd be funding it on debt. It would be excellent for shareholders long-term though, as long as oil recovers in the next year. But if we want capex to stay at the budgeted 160 million'ish, that also would add to debt. You can accidently paint yourself into a corner. Again, I go back to suggesting a dividend cut, not because they have to, but because it would potentially have such a positive long-term impact. Lets say they cut the dividend to zero and bought 50 million shares with that cash. Worst case, they're no worse off than they would have been. Best case, the potential for capital appreciation in the future goes up substantially as oil recovers and we're left with a company that only has 290 million shares instead of 350. They could also cancel the DRIP in the short-term.. But again, that costs them cash flow, and if oil stays low they'll need all the cashflow they can get and would look really dumb if they painted themselves into a corner by spending surplus debt room when theoretically they may need some of that to weather the storm. I don't know what the LTS balance sheet looks like, but I'm betting that their share buybacks are actually a pretty risky move, because (I could be wrong) I think LTS has a lot of debt as it is..