RE:RE:RE:Can company update buyback statusThey do have to watch their debt level. Earnings can change in a heartbeat, and those debts have to be repaid. Selling assets or shares to get debt down to a manageable level isn’t always a viable option (just ask ALA). You only get what the market will pay, not what they’re worth.
mnztr wrote: Not correct, there are several sources of funds. 1) reduce capital spend - if oil prices are low, why look for more oil when buyback will yield 14%? 2) slow debt repayments - borrowing cost 6% vs 14% divvy 3) Borrow more money, similar to above but with 6% borrow rate, why not net 8%?
When they buy back shares their operating EPS will increase. Also if commodity prices rise that is yet another potential source of funds for buybacks.
Urbani wrote: Let's be clear here on this share buy back plan that may not be coming... The divy would have to be cut to do this. More damage IMO would be done to the share price than what that would be worth.
VET could only buy back so many shares in any one day and it would be over a prolonged period of time. So a doubt the impact on the share price would be much by doing this.
I see a share buy back program as a negative. Put that cash back into production and operations.