Who gains more buying back shares than WhiteCapEvery share Whitecap buys back saves them 16% worth of yearly dividends.
That's a similar bang-for-the-buck of paying down credit card debt.
Their finding cost of $27,000 per flowing is very similar to what
they're trading for at the moment.Now factor in the decline rates of the
new production versus 21% for current production and drilling makes
absolutely no sense.Buying back 10% of the shares ($80 mil) would
increase production / sh by 11%.It would take roughly $220 million of capex
to accomplish the same thing with the drill bit.With oil prices down and
out it makes absolutely no sense to add new production.
Pay down debt, buy back shares and repeat.