RE:Nice discussions No dividend this year. That was never part of the plan.
Eric presented last week at the Peters conference and said they plan to reach the debt target of $800 million by late Q2. This is likely conservative.
He also said that at that time they would transition to 50% of FCF to buybacks. They strongly favour buybacks as the best method for shareholder returns. They believe the company is significantly undervalued.
So no dividned in sight. If you want dividends, there are other options, but this is still in the two or three bagger world with the above plan vs dividend payers which will have modest gains from here assuming stable resource prices.
An interesting twist compared to Ed was the mention in the presentation that they have no plans to sell any assets. They love eagle Ford and are open to other accretive acquisitions in the eagle Ford.
dllscwbysfn wrote: Good debate over the last few days. I have a couple of ?.
What are the decline rates on clearwater? We all know that they come out very hot but what does that well look like after 1,3, 6 months. Anybody know.
Any thoughts on what there production will be at year end. I am hoping for near 90,000
Last Q they paid off no debt due to FX. Any educated guesses out there what they will do this Q4?
For those looking for a dividend in the near term this simply is not going to happen. Maybe in 2024.
And just to state the obvious the biggest factor for oil stocks will be the price of WTI. At $70 we barely pay any debt, 80 however things start looking really good. 90 plus WTI for a sustained period will drive the SP through the roof.
Go Cowboys