RE:RE:Market Tightening Actually operating cashflow does have the dividend covered, the size of their capex program did require some borrowing and was large enough to cover depletion expense and provide about 7 million of growth capex. I think the size of their net debt is reasonable for the size of their operating cashflow. It takes time for the costs of a well to be recovered from production of the well, the well can still produce after that though.
navajojoe - (7/10/2023 5:32:59 PM)
RE:Market Tightening
Looked more like big sellers than buyers, as the share price dropped.
But you are right, borrowing to pay a dividend while depleting reserves is not a good strategy.