RE:Dividend Playacar wrote: Their financial results are outstanding but I'm not surprised that the stock price is down this morning. Yes a 20 percent increase is good but. They are only paying out 25 percent of their cash flow. Most oil gas company's are paying out about 50 percent. It's time that the shareholders get paid. I hope that pine cliff will perhaps pay out a special one time dividend. As the old saying goes. Make hay when the sun is shining. They got the cash. Hope they don't make a acquisition . This would be a negative in my opinion. Just like whitecap energy. Rather then increase there dividend they paid 1.9 billion on a acquisition
At some point all of them have to replace reserves. They can't just return capital and not replace or they're eventually dead and I don't see a huge drilling inventory here. and a quick calculation of active wells to average production ..... ~21000 boe's per day and 8259 standing active wellheads that's about 2.5boe's per well. In other words, a trickle, so they need a lot of wells to create any meaningful produciton levels. So don't be surprised to see acquisitions here and realize they'll be paying premium dollars for it around the $30k/flowing BOE (gas) mark.
Those were some great results no doubt. Good for them. Obtaining term debt is what saved them from the history bin. I also had a chuckle while reading the Q2 report. Showing huge cash flow and receiving a government grant for abandonments at the same time. Good gig if you can get it. LOL