RE:RE:Hmmm
I would have to think that they chose 5% because they feel that they can do that and still execute any aquisitions they want to make. Otherwise I'm not sure what the downside would have been to apply for a 10% NCIB except for not wanting to disappoint shareholders if they didn't buy back the full 10%,
Dividend looks like it should be here to stay short of another oil apocolypse happening:
(from MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL RESULTS)
Tamarack is pleased to announce the implementation of its dividend policy and return of capital framework.
The free funds flow return will be achieved through modest, sustainable base dividend growth, special dividends and tactical share buybacks.
Sustainable Base Dividend – Providing shareholders with a sustainable base monthly dividend which grows in conjunction with earnings over time is a key focus for the Company. Tamarack will initiate a base dividend of up to 25% of free funds flow predicated on the Tamarack 5-year plan price deck of US$55/bbl WTI and $2.50/GJ AECO. The remainder of free funds flow will primarily be allocated to net debt reduction and strategic asset acquisitions in existing core areas.
Enhanced Return to Shareholders – Once the Company reaches its long term $250 to $300 million net debt target, Tamarack plans to return up to 50% of the previous quarter’s free funds flow inclusive of base dividends, taking into consideration market conditions, to its shareholders through tactical share buybacks and/or special dividends. The long-term debt target is predicated on a forecasted year-end net debt to trailing annual adjusted funds flow of 1.0x at US$45/bbl WTI. The remaining 50% of free funds flow will be allocated to further debt repayment and future acquisitions.
The inaugural monthly dividend of $0.0083 per share will be payable on February 15, 2022, to holders of common shares of the Company of record at the close of business on January 31, 2022. The base dividend is modelled to be sustainable down to less than US$35/bbl WTI.