RE:RE:RE:Free Cash Flow thoughtsThere is plenty of accounting magic. That's why we love it. Yes, the interest payments will drop by 80 million @ if they pay down $1 billion in debt which not to quibble is 14 cents in eps on 560 million shares. BUT the BIG number is that $1 billion moves on the balance sheet from debt to equity if all they do is maintain production, reserves, ie no growth from Clearwater or anywhere else. That my crazy Canuck friend is $1 billion to us shareholders or roughly $1.79 per share. JUST from debt repayments!!!! Remember every dollar debt is reduced increases our equity value. That's the magic of accounting. Again, assuming reserves and assets are not depleted nor any additions.
ManitobaCanuck wrote: If they hit 1billion from the previous 2 billion last year, their debt costs will also reduce accordingly by 80million a year which is again approx 16 cents yearly to the EPS .They can easily pay that out as dividend and tackle rest of debt with current cashflow.
This is my opinion and my math . Please correct me if I am wrong here
calebmar wrote:
Debt was $1.6 b last qtr and will end 2021 around $1.4b if not below. 2022 they need to do more than just pay debt if oil price remains in its current range or higher.