RE:RE:CJYes CJ does have some flexibility now that debt has been reduced down to a quarter of what they have had for years. At current oil prices they are likely around breakeven after Capex and Dividend. As you point out they could cut the ARO and trim the dividend along with cutting Capex if oil prices were to drop substantially from current levels.
At $80 oil they should have Cashflow of $270 million per year. Every $1 drop in oil prices reduces Cashflow by aprox. $7 million per year. If oil were to drop $10 to $65 CJ would have Cashflow of aprox. $165 million per year. If they cut Capex and ARO down to $90 million and trimmed the dividend to 4 cents per month which would total aprox. $75 million, total Capex plus Dividends would be aprox. $165 million per year which is aprox. equal to Cashflow at $65 oil.
At the same time if oil prices were to rise by $10 to $85 CJ could pay the current 6 cent monthly dividend which yields aprox. 10.5% at the current shareprice and still bank aprox. $70 million per year in remaining Cashflow.