RE:Love the variable div.For this year, a 7 cent divvy at $1.60 sp equals a 4.375% yield. Share price appreciation will entirely depend on what GXE does with the other 70% of free cash flow and execution of guidance.
Growth through the drill bit, optimisations or acquisitions and shareholder returns via buybacks or special divvys are the options with maximum flexibility to adjust.
Just as a math exercise, 100% of FCF = $.23333 /share /$1.60 sp = 14.5 % yield.
A sustainable yield at 7.25% equates to a $3.20 sp and a 4.83333% at $4.80 per share.
Depending on oil prices, the effects of supply and labour inflation, management execution and the many other variables that may affect cash flow, BUT, excluding the restrictive implications of covenants managing bank debt of a debt-free entity, I speculate that GXE will do very well indeed.