RE:RE:RE:RE:Caterwauling
uwebb429 wrote: Kadiddelhopper wrote: The dividend is very minor-league , hardly woth the mention, nor all the angst that is being stirred-up.
Anyone that thinks an 11% annual dividend is "very minor-league" should learn more about dividend paying stocks.
Not sure why anyone wants to argue with what Gear Energy has stated in their December 2022 presentation.
If WTI is at or above US$80/bbl, the dividend is forecast to be funded with free FFO. Prices below that, would necessitate a reduction in capital and/or the dividend
GXE's free cash flow calculation to cover the dividend is based on WTI at $80 and WCS at $62 or above. WCS is nowhere near that level at the moment. That's a problem that anyone holding this stock or thinking about buying this stock should be aware of.
The prices quoted for dividend sustainment are on a yearly average, not daily, hourly, whatever spot prices. The BOD must make short term dividend decisions on a monthly basis to either pay from free cash, cash reserves, credit line or to suspend any dividend payment for that month on a temporary basis.
The BOD can also choose to raise, lower or eliminate the dividend altogether. All these options have consequences for the share price.