RE:Crescent Point WCS ProductionNorthSun wrote: According to IR it is less then 5% of total production, most of their production is receiving a slight premium over WTI some of it due to it being somewhat waxy in nature they are getting a slight discount to WTI prices.
He said the company does not want to lower the dividend, in fact he said lowering the dividend .10 a month would only save them about $100 million a year. If you do not believe me which is understandable phone them.
Since June 15th OPEC has been shorting oil according to information I received yesterday, this is the second time they have done so. This is also the feeling of CPG. Saudi Arabia recently said oil is going to rebound so that could mean they may soon start to cover their shorts.
The damage to the US shale oil producers is not going as well as they hoped it would, so they have tighten the screws somemore.
Perhaps I don’t understand basic mathematics.
As per the July Presentation there are abt. 500m shares and the current dividend is $2.76 / year.
That makes the annual dividend obligation (cash and DRIP shares) abt. $1.38b
Reducing the dividend by $1.20 / year (.10 / month) would reduce the obligation to abt. $.780b
That would be abt. a $600 million reduction in cash dividends and dilutive DRIP shares.
As Always, Do Your Own Due Diligence; It’s Your Money !!