RE:RE:SU options with its free cash flowObviously a payout of approx $8 billion in annual dividends is not feasible...unless (1) oil goes goes higher stays substantially higher for the rest of the year (2) they don't plan to do anything with FCF other than pay a dividend (which is pretty unrealistic)
5.33 x 1,506,484,194 = $8,029,560,754
According to TD Securities Energy Report from July 15
If WTI averages $65 for 2021, they are forecasting:
$10,525,000,000 in Cash Flow
Less: $4,270,000,000 in Capex
= $6,255,000,000 FCF
Of the ~$6.26 billion in FCF, around 4 billion will be used to deleverage and bring down net debt to $11 Billion (the TD folks calculate net debt as short term liabilities + long term debt, minus current assets) and around ~$2 billion towards paying the dividend and buybacks
PabloLafortune wrote: If as you say Suncor generated $2B of cashflow in Q2, then pay all of it out as dividend ie ~$1.33 or $5.33 annualized or 20% yield ...would be a heck of a lot more effective to raise the share price than buybacks which is simply put a colossal waste of money for this company.