Management needs to Get some B a l l sReally building a gas plant at Sunrise and no production increase for 2022, as we know the world needs more Canadian Energy. 46% plant utilization at Kakwa, and they say they are drilling the wells with 16% cheaper and there are no economic drivers to increase production while oil is over $100 dollars and Gas approaches $7 dollars a Mmcf?
The best way to reduce the impact of those hedges by 10% is increase produciton by 10%, and all new production will not be hedged, and it will simply represt very high net back to their shareholders.
Really 300 million more at Kakwa would have significant impact on production, but 300 million in share buyback you will save 40 cents a year in dividends on about 16 million shares or 6.4 million dollars. Increasing production would be significantly better for shareholders.
2022 will be the second year in the row with more than 1 billion and in 2022 it could be 1.5 billion in hedging losses, while share holders get paid in total around 250 million dollars. The managment knows their paychecks and bonus scheme is covered but the share holders get kicked down the road.
IMHO