COP26 is a big dud - thank goodnessOnce the glow of COP26 is behind us in a couple of weeks the oil rally will resume. The conference achieved pretty much nothing other than photo ops. No serious damage will occur - other Trudeau's insane emmission commitments that he made from the podium because the drama teacher loves to perform. He'll need to negotiate in good faith with the Western provinces or face a national crisis. If you by chance voted for Trudeau, then shame on you.
Moving forward refinery utilization will ramp up, crude inventories will fall and demand will continue to grow. I would be extremely surprised if $90 WTI is not surpassed by the year end and if we have a cold winter and lots of jetting travellers - watch out $100+ oil here we come.
I picked up some more shares today at $5.88 to add to the shares I purchsed earlier in the week at $6.12
CPG still has plenty dry powder to announce major increase returns to shareholders and as you know CPG won't necessarily wait until earnings reports to announce a dividend increase. The current 12 cent dividend is only 5% of forecasted adj. funds flow using an extraordinarily (ridiculous perhaps) conservative $50 WTI. Both the 5% payout ratio and the $50 WTI are looking quite silly considering the market and it seems very likely management will appease shareholders with a big increase at or before the next earnings report alongside an announcement about a 5-10% NCIB. When that happens the stock will jump large.