RE:Encouraging Well Here is stockwatches energy summary. He does a pretty good job of throwing companies under the bus. He is right about the credit line reduction though. Wonder if that was what pushed out the dividend? Maybe another cut is coming in May?
Here in Canada, Jim Evaskevich's Alberta Cardium-focused Yangarra Resources Ltd.(YGR) added 19 cents to $2.96 on 610,800 shares, pleasing investors with its 2023 guidance. The company will aim for production of 13,000 barrels a day (up from this year's target of 11,250 barrels a day) on a budget of $125-million (compared with this year's $110-million). Management boasted that the budget is well within forecast cash flow and that it expects to reduce debt to just $75-million by the end of next year.
Management noticeably did not reiterate a prediction that it made last month, when it said it "intends to implement a return-of-capital strategy when bank debt reaches less than $100-million." It dangled possibilities such as share buybacks or perhaps even special dividends. Neither got a mention in today's update. What did get a mention, if only a small one tossed off to the side, is that Yangarra's bankers have completed their latest credit facility review and have set the facility at $180-million. Yangarra opted to omit the context that this is a decrease from the prior limit of $210-million. The newly thinned financial cushion (the facility was $153-million drawn as of Sept. 30) may explain the sudden reticence about future payout possibilities.