RE:Is the dividend at risk? Dividend
With a strong cash flow, Pine Cliff initiated a monthly dividend in June 2022 as a way to return capital to its shareholders. The company has increased the dividend twice since then, and the current forward annual dividend stands at $0.13 per share, resulting in a dividend yield of 10.57%.
Pine Cliff allocates 1/3 of its free cash flow towards dividends, a payout that is lower than the average for Canadian oil and gas producers.
Pine Cliff considers its $0.01083 per share monthly dividend to be secure as long as the benchmark AECO remains above $2.62/Mcf. If AECO stays above that level, it is estimated that the funds flow will be sufficient to cover all cash expenses, capital expenditures, corporate taxes, and dividends.
***Feb AECO has been weak, but even so, it will average above budget, adding in the average in Jan and the March futures, and it's above the budget for the quarter. Look at the increasing futures for AECO - this is likely near the bottom. Yes, the dividend is safe at these levels - this is a overreaction and a buying opportunity, and future pricing is higher - particularly averaged by year.
IMO and GLTA
https://www.gasalberta.com/gas-market/market-prices