Buying Back Shares Week over week this stock is losing to oil price.
I feel it is because using the companies money buying back stock, and telling the shareholder that they are getting returns by doing so, is a bad business model.
Production growth through drilling, up until now, has been a part of the business, CF multiples, share targets etc were based on it and it worked in periods especially prior to the US shale boom. Now when there is an opportunity to grow because of the oil supply defiecency, and resulting oil price, ERF isn't. It's buying back it's stock paying a pathetic dividend that doesn't even cover the cost of my prime + borrowing.
What is the rate of return of buying back stock?
What is the rate of return of drilling a Bakken oil well? Pick the better.
Let the investor buy the stock. Do what you do best ERF, drill oil wells, grow at 10% and pay a proper dividend. Because if you're not growing your production someone will be. A private or whoever.
You need to start acting like an oil company again so your multiples resemble that of an oil company. Leverage. Production growth. Cash flow growth. Dividend. And then we can start outperforming the commodity.
I've been here a while, not sure what to do. Make my decision easy. Be an oil company again.