RE:RE:WCS almost $75They won't do a large buyback........but since there is MASSIVE FCF building up, they can
1) increase capex and drill more oil,
2) Buyback some shares
3) Paydown debt
4) increase dividends
debt costs us 3.5% so removing shares is mathematicall far superior to paying down debt although I personally think they will focus on debt for the next few quarters.....once they paydown a significant portion (maybe down to 150 million) then they will focus on shareholders value and buybacks are the quickest way to get there.
The fact that they used shares at $5.50 to aquire assets last year and early this year is irrelavant in current market, although I will agree with you in the sense that as the share price moves up, the benefits of buyback grow smaller. My point was that this is a much better situation for the company to be considering their next move.....they get to decide between many good options
GLTA