BNE, Dividends & Oil PriceRead an article today about oil price drop which was due to the planned Strategic Oil Reserve (SPR) release by the USA and others being a coordinated. That was the justification for the depressed oil prices today.
I consider the article to just be white noise. Why you might ask... because the day after the US indicated they would release 1 million barrels/day... the Saudis did the highest premium raise in the ARAMCO's history. I believe they did it to reduce their market share by1 Million barrels/day and increasing their revenue.
This is another example of the fight between OPEC+ and the US... OPEC is showing the American's that they will be the market makers (leaders).
I try to look closer to home and focuse on the fundamentals. The bottom line for me is that BNE might pay down maybe 50-60 million in Q1. Bank debt could be eliminated by years end. I suspect that Capital Discipline would continue to prevail at BNE.
I think oil companies know that they won't be able to get bank debt as long as the ESG & Environmentalists have breath in their lungs. Hopefully we haven't also seen the death of Capital Markets for equity... but that money is hard to get too!
Investors should continue to demand Return of Capital. BNE paid 1.3 Billion in dividends previously. I would like to see the company work to reinstituting a sustainable dividend and provide a good yield to investors... hope to see it be done in 2022. +
Do others in the stockhouse community believe that the dividend could be restarted in 2022?