Whitecap Update - October 28/2021 October 28/2021
Whitecap 3 Quarter results.
- discretionary funds flow of 128 M this quarter alone !
- 50 % to be returned to shareholders - this potentially represents close to $0.11 per share on a quarterly basis or equates to approximately $0.44 cents annually - to be used for share buy backs, dividend increases , or 1 time special dividends .
- synergies from assett purchases are now beginning to show up in results , and likely will improve on a go forward basis . With early day wells all coming in under budget , or producing better tham expected results .
- Whitecap in there operations update started or lead with the Montney assets drilling results witch indicates to the long term shareholders how excited they are about this asset . LNG - Natural Gas prices have exploded and this assett purchase just looks better every day
- what caught my eye though was the Private asset they picked up in Saskatchewan for 68 M . This is netting whitecap ( us ) 33 M annually at current strip pricing . Suggesting 100 percent ROI in approx 2 years . Private equity Considers 5 to 7 years to be excellent .
- another interesting item that is incredibly interesting if you caught it ........ is they are returning to old assets with new technologies and gettimg Meaningful results . Assets that were done or played out , close to being written off , are now being brought back to life and with new technology making whitecap ( us ) money . This is all a bonus .
They are going to be doing another 33 of these at minimal cost .
I have read that they should of waited Until today to announce the dividend increase , and who knows really but I think with all the reporting going on today , and with one of the company's reporting being Suncor , we were probably better off having the news of the increase , 5 royalty sale on a day when we had the floor alone .
If your long and you believe in whitecap returning money later on to us , than while the price is lower we are getting more shares at lower prices with the divvy being re invested .
I think today would of been a great day to add to your position. With the dividends and 10 dollars a share in the next few months . Someone said they bought 30 k shares today . Probably will lock in a 40 plus percent return on capital apprectiaon alone , and get a one time 10 cent divvy to take the wife to Vegas just to have dinner lol Funny but that's the truth We are spitting out cash , and the leadership in writing have said half is for shareholders, and why I believe this is a good thing is how many shares does Grant own ? No shareholder is going to stink out a pay day in the form of something they also get That's just how it should be ?
Time will tell
In the mean time your getting the DRIP under 10 dollars a share , and all of those shares will appreciate in value .
Good luck everyone
Craig
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