Twin Butte Energy Ltd TBTEF

RE:News Out-Twin Butte cuts 2015 budget, drops dividend to one

[konzelmann]

Very happy about this dividend cut. They're pricing in $60 oil, and that's a conservative outlook. What this is going to do is allow for 'surprise' production, capex, and dividend increases if oil ends up going up enough to support it. I am extremely happy that they've cut the dividend instead of driving the company into the ground to pay a dividend that they can't afford with $58 oil. They've also cut the dividend at a time when the market is actually responding positively to dividend cuts, instead of having to do it some other time when the stock price would have been punished heavily for it. Honestly, I felt the dividend was too high even with $90 oil... Because their declines had ended up being higher than they originally budgeted for. This puts them in a great position moving forward. Anyone who actually knows this business would consider the revised guidance to be positive.