RE:RE:RE:RE:RE:One week until Q1 releaseAgain Im impartial to the dividend vs buyback...personally I prefer a combination of both.
Dividend usualyl can give that quick shareprice pop...5% yield equivalent I doubt for a small cap oil sector company...Im guessing 10-12% yield will be what companies trade at.
But that still leaves oppurtunity for a quick pop in shareprice..great if plans to sell company in the next year.
But if looking as company longer term say 3 to 5 years...when you trade at a discount to peers, then buyback would create more value to shareholders in the end game...just not instanteous. If they used that $160 million to buyback 15% of the shares...think how much larger of a dividend they could pay come summer 2023...
Buybacks do require trust in management not to squander the buybacks with issuing grants and options to themselves..but a well disciplined mangement can execute successfully.
I agree OBE doesnt have a huge share outstanding but still has enough volume that it could reduce by 10 even 20 million shares before it becomes illiquid like a BNE for a larger investor.
I like WCP strategy a bit of everything. I always stated I would like an even split 25/25/25/25 to be split amongs debt reduction/ expanded capex or growth/dividend/buybacks
This gives oppurtunity to dial some things back if commoditiy prices fall without having to cut dividend...dividends once in place investors demand they stay and sort of become a fixed cost. A buyback, capex, and even debt reduction can all be adjusted easily on the fly...
Regardless the AGM should give us much more light onto the future direction OBE is going and bottom line with its quality of assets and current commoditty prices its hard for them to lose.