RE:At what point would cj cut the Div to 5 cents? CJInvestor wrote: Any guesses on the threshold that oil would have to stay at for a while for a div cut to be considered? I'm not talking about out and out cancelation. Just a reduction.
That's a good question. If wti stays where it is, I think CJ is fine. If it drops into the 60s, I think you'll see reduced capex and reduced aro spending at least for a while to maintain the dividend but any prolonged stay in the 60s I think results in a dividend reduction
Personally I don't want to see any further divvy increases unless we get sustained production up to the mid to high 20 thousand range.