Bullish Guidance & Clear Shareholder Value CreationThe huge dividend increase (5.5% NTM yield - $100M/yr) and strong guidance on 2022+ production are such a contrast to where we were 12 months ago.
This is a visionary move by Darren & team, I fell like they are a few quarters ahead of our emotions as investors who saw the stock go down to $1.00 fearing the business was going bankrupt not more than a year ago. in 6 months we will praise them, I have no doubt.
Dividend ($100M/yr) + CAPEX ($350M/yr) will still be very managable at the current gas prices for 2022 - 2023, Peyto could already hedge a significant portion of the produciton at C$4.00/mcf+
Quick maths would leave the business with $300M+ FCF in 2022 & 2023 to accelerate debt reduction if they achieve 110,000 bbl/day of production, the low end of their end of 2022 guidance. IMO this is a great balance between shareholder return, growth and financial sustainability.