RE:What a buying opportunity today Tradestay wrote
people focus on the oil price and FCF. I got a few thousand shares at 8.20. I share my opinion on this company before, I still believe in a couple things: 1) Debt will be nearly gone by Q4 22 or Q1 23. If not gone the quarterly cash flow at 100 should be exceeding the debt level. 2) On ESG, these guys spending way above whats required for ARO. This means we don't have over hang liabilities outside of bank debt. 3) share count is decent so great opportunity for special dividend. 4) with massive cash flow a NCIB can be implemented for days like today. Good luck to all.
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At the end of the First quarter they had debt of aprox. $147 million. At the oil prices this quarter they should have Free Cashflow of aprox $95 million in the second quarter which should bring the debt down to aprox. $52 million.
In the third quarter they will start paying the 5 cent monthly dividend which will cost them aprox. $ 7.5 million per month.. If oil prices stay at these levels they will still bank over $24 million per month after paying the dividend. As total debt should be around $52 million by the end of this month it will take a little over 2 months after that for CJ to be debt free while paying the dividend.
Aprox. 3 months from now CJ will be where they have never been before. Debt free while paying a nice 60 cent per year dividend with another aprox. $24 million in Free Cashflow piling up in their bank account every month.
Its looking very good.