POU and Energy Reit?
Dividends
Well with 96 cents a year in regular dividends, POU is very competative with any reit on a return basis with a base dividend of almost 4 percent.
Growth - (25%)
POU exited 2021 producing around 82,000 boe a day and will likely exit 2022 producing north of 100,000 boe a day. That a roughly 25% growth rate all funded by CF.
Debt
While pou has close to 40 million share of NVA on the balance sheet, they really have no net debt.
No Debt.
So with 80 dollar oil they can fund their growth, pay a 4% dividend, and grow 25% in 2022. Thats not to shabby. On top of the they have roughly 3-3.50 a share in FCF and they are not taxable for a number of years?
Problem with this?
Oil has be pretty well over 100 dollars U.S. in the first quater, and June gas is almost 9 dollars canadian. They are dripping with cash flow way above their projections. By they way they are not taxable for at least 2 years.
Icing on the Cake
The icing on the cake is this, pou has over 2 million opportunity acres in the very best plays that are worth billion of dollars, as well as their own drilling company and tons of other investments that are worth big dough.
Truely in an energy super cycle, i sold off all the rest of my Reits today, stock providing 3-4 percent returns that are interest rate sensitive, i am done with them. Especially with Trudeau + NDP coalition, tax anything that move, they ruined the banks, insurance companies, and now they will destroy the housing market. These reits have been dogs, and today is a great opportunity to unload them.
The market today looks like a buffet off opportunity you will need to pushe Raymond asside and make sure you don't let him have all the dessert.
IMHO