Excess Cash Flow and Sustaining Capital The Excess Cash Flow and Sustaining Capital measures allow management and others to evaluate the Company’s ability to return capital to Shareholders. Sustaining Capital is managements assumption of the required capital to maintain the Company’s production base. The Excess Cash Flow measure is calculated by Adjusted Funds Flow less Sustaining Capital.
2023 Guidance:
Production: 34.500 to 36,000 boe/d (Expect it to 37,000)
Adjusted Fund Flows: 415M
Capital Exp. 145M
Free Cash Flow: 270M
That means 75% of 270M is 202.5M.
202.5M divided by 3.01 SP as of yesterday means 67M shares can be retired.
202.50 divide by 4.00 SP in a few months time means that 50M shares can be retired.
So the shares can go to 4.00 in one to two months. Maybe April 2, 2023.
50M shares is 8% of shares outstanding.
Now if the price of oil is $10 USD higher in a few months time from now then the shares can be $4.25 to $4.50.
God bless oil and gas investors and oil and gas workers and their firms.