January/2022 Average WTI 83 + At 80 dollar oil Whitecap presents to us they will have 1.095 Billion Discretionary Free Funds Flow. DFF is money after all commitments including ( INCLUDING ) the dividend. The dividend amounts to approximately $170 M dollars . So this is enough to take the dividend 6 times. Just incredible when you consider this. There is a snow ball effect when a company is managed like whitecap. That being they pay down debt with respect and this in turn lowers cost or another way to look at it they improve DFF.
So we just locked in 3 dollars above $80 for January, and we just had $88 for the first 2 days of February!
I will be the first to say don't count your chickens before there hatched ! However the eggs look Golden !!
This 3 dollars at 100,000 per day production. Is 300 k a day or 9 M monthly. Or $108 M annually.
Whitecap is forecasting 130,000 barrels per day for all of 2022. This management team usually under promises and over delivers.
There is recent insider trading at the 52 week high , if that is not a bullish bet. I don't know what is. Lastly when compared to most other comparable E/P about 50 % less appreciated , and in some cases more than 100%. !
So we are up considerably and in any other environment you would be completely satisfied. When in fact we are a HUGE HUGE VALUE TRADE , with a DIVIDEND INCREASE LIKELY BEING TBE CATALYST TO $11- $12 dollars going into May. This is being conservative, especially if we hold above 80 for the next 4 months.
Oh !! One last thing. Have you seen the gas price. !! We actually produce a fair amount and this is a growth area.
Enjoy the ride especially of your long like myself , you deserve it !!
Got to say it. CHOO CHOO. THE TRAIN IS COMING !!
Craigster !!