RE:RE:CJ about to unveil a double digit yieldMethinks some of the counters have gotten ahead of themselves due to the forward month settlement thing. WTI only averaged $80 in Q1 (recall the big dip in early-mid December). It was not until March that prices really spiked, with April (Q2) as the settlement month.
My interpretation is that CJ had a front end cost heavy investment year, several completions happening in Jan, and more work to pick up, so heavy early expends. And recall they replaced some slides and boosted capex expenditures. At this rate and with these costs Q1 won't put them into dividend territory ... BUT from what they know in early May they might be in that territory ... but I don't know how conservative they will play it with unofficial numbers.
I'm guessing that some of the capex boost was inflationary based, but also hoping a bit more growth.
What I would firmly think is that there will be a very solid dividend at/by Q2. I'm OK if they wait, means a bigger divvy out of the gate and an every more stable balance sheet.
Q1 might not be the blowout across the board that lots of people are thinking. Very solid, great debt reduction, but it's Q2 where the party is going to really start.
GLTA, long and strong
Binkie wrote: I'm somewhat skeptical about the double digit dividend. They have removed some dividend scenarios from the website. I think it will be excellent but slightly under 10%. Guess we will know next month but I certainly won't pout if it's ONLY 9%. It would be the best dividend yield in my portfolio.