EXPM:EGRGF - Post by User
Comment by
Khersonon May 16, 2017 4:30pm
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Post# 26251717
RE:Dividend
RE:Dividendyieldguy wrote: As a shareholder for about a yr. now, I am impressed with Mr. Clark's focus on cutting costs.
I like the conservative approach to running any company. And, getting the balance sheet in good shape should be and apparently is, priority one!
I would not be surprised if Eagle acquires more properties.....with the current state of the oil industry. There have to be bargains out there. It would also be a good way to grow production on the cheap.
However, in order to do this, they need more cash.
So, I would not be surprised to see a either a reduction in the dividend and/or a secondary stock offering. I think longer term this would make sense and, in fact, be good for shareholders.....long term.
Even if they cut the divy in half......it would still yield about 9%. And, production growth would be funded with the additional cash.....as opposed to funding growth with debt.
I believe a secondary offering and/or a dividend cut (with a 9% yield) would actually be a healthy thing in the longer term.
I would be a buyer of Eagle on that news.