RE:PEY and FRU Have Exactly The Same Market Cap at 2.56Bnewcoin wrote: PEY's dividend rate should be roughly equal to that of FRU. Exciting!!
Careful. Different business models, debt levels and objectives. Peyto team confident but may have overshot the landing but hiking dividend too much, too early. I say this as someone who endorses the company, have owned it myself and bought it for others. The dividend does not build the value of their shares, it is the financial robustness of their balance sheet, their hedge book, their asset base, the clever people who work there and also own the shares themselves. Peyto is a natural gas champion on the road to recovery but they are not out of the woods yet. Would be nice to see debt down to $500mm before divided adjusted higher. I suspect it will happen but we are a few years off, and the dividend hike will increase the time it takes and increase the risks of reaching that debt target. True operating independence means you don't need money from the banks, you don't need to sell shares, you fund capex from cash flow. Not answering to the ESG gang attempting to tax you out of existence in the name of social justice. Atlas Shrugged exists. Takes courage to be on the correct side of the trade.