GREY:TBTEF - Post by User
Comment by
PUNJABIon Aug 24, 2015 11:25am
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Post# 24045730
RE:ROLLBACK
RE:ROLLBACKWith the rollback the number of shares are reduced. Earning per share increases. The dividend is approved by the board & announced by the management every month.
If the company plans or can afford $1 million in dividends based on cash flow then they can calculate per share dividend amount. If the number of shares are reduced then the company can increase the amount of dividend per share & still pay the same dollar amount in dividend.
The most important thing that can affect the payment of dividend is the cash flow & the price of crude oil in case of TBE. TBE has lot of hedges till the end of 2015 & some for 2016. But if the oil prices do not recover in 2016 TBE will have no cash flow to fund dividend.
Most oil companies big or mid size cannot afford to pay dividend at WTi $38.