RE:RE:RE:RE:with a float this tight charts and prebid etc mean zero That is more or less my position.
I think we need to pay down debt by about 100 million asap while maintaining production. We are currently paying it down, or accumulating cash anyway, at roughly 10 million a month at anything near current prices.
By July or August net debt should be down roughly 80 million from year end.
at that time, a simple announcement that they intend to return to a dividend model by X date - say October 15th at an initial quarterly rate of 10 cents - would suffice fo me. Follow that with an increase every quarter as debt continues to fall. If they raise the divvy by a nickel every 3 months until we hit a dollar annually, We would still cut debt in half by june 30th 2023 probably sooner.
they can dip into the revolving line to pay off BDC in September and have the bank line paid back down to the same level roughly by Christmas.
or merge with PNE and take their awesome decline rate, 75 million plus in free cash flow this year and deleverage even faster.
we need to lower debt but we have a lot more options with our current production level and high oil prices. I suspect industry is going to move to .5x cash flow as a ceiling for debt going forward with lots going for net debt free to avoid lender drama. We don't need to do it all at once.