Thoughts to increase shareholder valueMy thoughts on how to enhance shareholder value with the FCF. And these are conservative and assuming WTI stays above $90 for the next 2 years. As the share price increases the dividend yield decreases, so to keep pace with the upward SP, increase the dividend 1% per quarter maintaining at least a 6% yield. Also, buyback NCIB 1 million shares per quarter as this will increase the SP but less shares less dividend payout. I believe this can be acccomplished starting 3rd quarter and still be debt free by the end of 2022. Starting in 2023 if oil stays above 90wti extra FCF can start to be used for additional growth opportunities while still paying a 6% dividend and buyback 1,000,000 shares quarterly. I would expect this scenario to increase the SP incrementally and by end of 2022 to be around $12 or $13 dollars.
Starting in 2023 with the extra FCF and being debt free, the potential for shareholder returns with the dividend and incremental SP increases with the NCIB, this stock will be on a solid foundation for future growth while still rewarding investors with very good returns.
Just thinking out loud!