Twin Butte Energy Ltd TBTEF

RE:RE:RE:RE:RE:RE:Almost comical...

[konzelmann]

I think you're correct there. I believe the current dividend was based on an average price of $65 - I think that's what guidance called for when the dividend was cut. But that also took into account hedges that continue to run out. And it also results in production falling from 20,000 boepd to 17,000'ish or whatever. You can't continue to pay out a dividend and continue to watch production fall, because as production falls your ability to pay the dividend decreases, and gets you into a spiral of decreasing the dividend, decreasing production, adinfinitum. Like bailing out the titanic with buckets instead of patching the hole. They need to just patch the hole right off the bat, then there's no problem. If this was my company, I would have cut the dividend to zero, and I would have done it 6 months ago. Production would be much closer to 20,000 boepd still, and the company would be in a great situation moving forward. It's not because I don't understand the dividend model or understand that TBE is supposed to be a dividend payer, it's because I value long-term returns over short-term short-sighted returns.