RE:RE:RE:RE:5.84 New LowI think was just too much pressure and uncertainty leading into Notley cuts and opec meeting to gamble on company’s viability; and today now we have global beat market recession fears putting demand growth into question. In fall release used words to elude to even potential div increases to come and fast forward a few months and like complete opposite.
George has said in interviews that with wti in 55 range no issues on dividend although when said differential was normal. This year for most part we trended in higher side so only past quarter got annihilated.
BNE has yet to issue any ncib like some others which is leading me to believe potentially not in their game plan as payback ncib is quite long term with cash outflow now; and currently not much dividend. I would think they will prefer to raise div back as soon as differential stabilized in narrower range and wti found footing again in spring when cuts chip away.
Fundamentals are not that bad and perhaps cuts also strategic to send message to market and government official of how dire situation was so actions could be taken.
The valuation is not fair for many in sector but a sign of pessimism and fear of worse to come. Baked in the sky is falling.
Not sure if date earmarked for 2019 capex plan in January but should foretell more soon. Fact wti in toilet right now will not make any decisions easier in few days. I think we need wait till spring to see true effect of cuts (local and nopec) and now perhaps more importantly the impact on shale recent downtrend may have (rates also rising and credit risks on liquidity) along with demand growth due to falling prices incentivizing more strategic buying and monster truck SUV purchases, lol.