Dividends vs reducing debtOn November 9th, Peyto announced the reinstatement of the monthly dividend, raising it
from $0.01 per quarter to $0.05 per month or $0.15 per quarter.
On November 10th, shares of Peyto closed at $10.70.
Today, Peyto shares are trading at $9.60 despite the fact it will soon reintegrate the TSX index.
Instead of giving a target to reduce debt level for 2022, they've announce a $375m capex program and $100m in dividends disbursement for the year.
The simple fact there is no true commitment to reduce debt with a specific target level as they have done with capex and dividends, might partially explain the lack of interest from the institutional investors They've got burnt from $40 to $1 because of this issue and they see Peyto's BOD will repeat the same mistake.
In the meanwhile these $3 options are tasting very good, aren't they?