Spreadsheet model using $50 WTI average for 2020 35% FCF So in this model you will see I used zero growth (that will be up to the management team how much they want to allocate to growth, vs dividends vs share buybacks vs debt payments) However I used $300 million maintence capex which approximates to $22k per flowing at 18% decine rate. The free cash flow comes in at around $243 million or 35%. There will always be slight adjustments to this number as the effects of the hedging program roll forward.
So what should they do with $243 million? I think what the team is doing now is prudent...a combination of everything, small dividend increases, 6% growth, debt repayments and share buybacks, the CEO is smart he's got it right.
