RE:RE:Should payoff debt firstNational Bank updated its forecast based upon the latest results. Interesting to see the change in debt forecasted for 2021 and 2022 without explanation:
2021 previous forecasr: $285,000,000
2021 updated forecast: $330,000,000
2022 previous forecast: $167,000,000
2022 updated forecast: $218,000,000
So, yes, with consistent inability to hit debt reduction targets, it makes no sense to reinstitute buy back or dividends with free cash. They need a strong CFO to harness Paul. Unfortunately this has been a position with historic turnover - perhaps because of clashing with Paul. Yes, reinstituting the dividend will increase share prices and make the shares into better currency for production replacement through acquisition - but at the price of ongoing debt financing risk.
I read in one post that the decline rate has reached 25% - that is huge, it means they have to replace over 4000 bpd each year - they paid $160,000,000 in the last big acquisition for that level of production. Perhaps they have to play a ponzi game with ongoing acquisitions to maintain production - thus the need for high share value - thus the need to do things to raise share prices.