RE:RE:RE:RE:RE:RE:Whitecap Imperial Dealsnowshoedb wrote: BNE was the poster child for returning capital... and will be again in time. It has taken a very long time.
I think most people also forget that BNE did not have an institutional following because of the low float of shares. The stock is tightly held with management who is committed to the company.
While I agree that management could look forward and communicate their return of capital plan, there is no need because management has been consistent for over 2 decades. "Return Capital to Shareholders is George Finks mantra"
The only decision is when? Current banking covenants don't allow for a dividend to be paid. Hence, it is impossible to promise the market when a dividend will come.
But we can all do the math. The company will have no bank debt by the time the current bank line comes up for renewal (cancellation). We can expect an announcement in November. The stock is an easy triple from current levels and I expect $1.20/share in 2023 and grow to between $2,40-$3.00 with $80-$100 oil for the next 5 yrs
Good post. I am aware and have written about the bank covenants. I don't think they need to comment on specifics of a dividend but something that goes like "when the bank debt is cleared we fully plan to return all free cash to shareholders". It's simple, non committal to a specific dividend amount or specific timing but makes people very aware of what's coming. And, as you pointed out, we can all do the math and realize what that means.