RE:Surge Debt!Kherson wrote: Paul needs to get our debt below $100 million before he increases dividends.
Kherson
FFS Kherson, yes, Paul needs to get Surge's debt under control... isn't that what they are doing... will be down ~$80M from March to end of October. If you say this one more time, I'm going to liquidate my assets and throw a sidewalk pizza!
I'm assuming you have read the Q2 F & O report. They have stated that the return of FCF will follow a phased approach, based on achieving certain net debt targets, as set forth below:
- Phase 1: Return ~25% of FCF to shareholders through the existing base dividend of $0.42 ps/pa. The remainder of FCF will be allocated to debt reduction until net debt is reduced to $200 million.
- Phase 2: Return ~50% of FCF to shareholders, with 25% allocated to the base dividend, and 25% allocated to strategic share buybacks, acquisitions, and/or variable or special dividends, until net debt is reduced below $125 million.
- Phase 3: Return ~75% of FCF to shareholders once net debt is reduced below $125 million. 25% of FCF will be allocated to the base dividend, 50% allocated to strategic share buybacks, a modest growth wedge, and/or variable or special dividends, and 25% will be allocated to strategic acquisitions and/or further net debt repayment.
With oil at $80 - $90US, I want the friggin' dividend... no ifs, ands or buts. Surge is poised to deliver strong operational results in 2022 and beyond. They have indciated they will deliver to its stakeholders a combination of: * Continued net debt repayment
* A sustainable, base monthly dividend
* Share buybacks
* A modest production growth wedge
* Potential for variable or special dividends
If you don't believe in Surge's management or feel that they will follow through on their commitment, then there is an alternative!