Positive Most would agree the news or more like the reaction was over blown. Once this situation works itself out. I think it just only becomes Bullish for Whitecap and others because think about it ??
1) SPR release
2) massive covid scare
3) air travel grounded with Market pricing in a world wide shut down of air travel for 3 months ( as per Goldman )
4) Opec + still moves ahead with there 400 k increase
What did that do aside from let's be honest it's a bummer to see , but really it should only show you , and anyone who is paying attention that we never dropped below 60 , and in really the floor where buyers stepped in was $65 dollar oil.
Just thinking about the analysis of the Cigarette companys. How they fell out of favour but paid out 400 percent to those who hung on . They spat out money , and investors got paid.
At 65 dollar oil we are debt free in under 2 years , with 485 million in DFF. Half of witch is for dividends , and targeted share buy backs. Not to mention we are a sitting duck for being a take over target for someone looking for Carbon Sequestering, and a company that is cheap cheap cheap at 10 dollars a share .
I don't think the CEO is buying just or only buying more shares because he is going to pay out more dividends ( this is one reason be assured) but he has been with Whitecap a long time , and there is only one way for the captain to cash in and that is selling the whole thing.
It does suck seeing oil drop , stock drop , let's be real here , but in the end we pushed back with all those things happening at the same time at $65 dollars . You know we are in for a few more bumps and we could see some more down days from $65 . I just want to report I feel far stronger about down side being above 45 in almost any scenario going forward in this covid economy .
I look forward to the next 6 months leading into summer driving season , all the while collecting some nice dividends, and maybe a one time payout as well either with a special dividend or we are sold
Seriously who let the dogs out , the Train is coming
Choo Choo
Craig