Parex Resources Inc T.PXT

Price Sensitivity & Suspending share buybacks

[Swing4theFence]

In their latest news release, the price sensitivy chart was really worth having a look at where is shows the impact of a $30, $40, $50 price points : 

https://stockhouse.com/news/press-releases/2020/03/10/parex-resources-announces-2019-full-year-results-and-provides-price-sensitivity

Too bad they didn't put a $20 price column down there but it would probably be realistic to assume that they would use up $50-$100MM in cash if a $20 price was to stick around for a year.  The nice thing is that they have lots of cash and no debt but I still think it would be best to hunker down and not buy back shares at this time no matter how low they go.

Now up on my soap box - imagine how much healthier the US market would be if all of these companies did not take on debt and buy back shares over the last decade to rev up earnings.  The market likely wouldn't have gotten to the heights that it did but you also wouldn't have companies like OXY and CNQ instantly threatening to go bankrupt with their massive debt positions.  Debt is the absolute killer of any company.