Over $500,000,000 Free Cash and the HedgeI'm wondering why the stock price ticked down in a response to oil price decline. The flucuating price of oil won't impact their anticipated free cash becaue of their hedging strategy, as if they were not hedged.
"The Company is expected to generate significant excess cash flow of approximately $525 to $650 million in 2021 at US$55/bbl to US$65/bbl WTI for the remainder of the year, providing an increased opportunity to further enhance shareholder value."
"These hedges primarily consist of swaps with an average price of approximately CDN$65/bbl."
I see you guys compaining about executive compensation and loss on a disposition. While those are things that certainly exist, the free cash of over $500,000,000 means this company can easily pay down the debt, buy back shares and eventually boost the dividend.
With no aquisitions planned they will be pulling in significant cash this year. The bull case, especially over the medium-to-long term is strong. I'm long on this one and I haven't seen anything to make me want to review my position.