RE:RE:Why Peyto Pays and Maintains Their DividendYou forgot to add the rest of his analysis. They have an outperform rating and a price target of $26.00/share; down from $33.00. Obviously he sees some problems but not enough to remove the outperform and a 38% upside potential.
I agree that in these low price environments the dividend should be reduced to reflect the low price environment. And I don't think the low prices will end all that soon. We will have the winter upsurge as always but the trend is projected between $1.75 to $2.75/GJ until 2021. A far cry from 2008. Since they are the lowest cost producer in the area, they could cut the dividend by 40% and save 87M to pay off debt. This would still leave a yield of 4.19% which is better than most natural gas producers.
Growth in this environment is foolish as it will lessen potential future profits and could weaken prices with too much supply.