RE:RE:RE:RE:RE:RE:Strange trading last two days!Thats ok I didn't even run any numbers (and I should have). It is safe to say that debt would have been lower so I still don't see them having made it the number one prority.
It is safe to say (and I did run numbers) that with no div since june of 2022 the debt would be gone and then some and of course they did buy back shares since then too.
I pulled this from the Nov 2022 Q3 2023 budget guidence:
2023 BUDGET Highlights
Generate adjusted funds flow of $270 million at a US$80/bbl WTI price;
Maintain net debt level below $50 million;
Dividend level maintained at $0.06 per share with potential for further shareholder returns through the NCIB or dividend increases;
Executing a $97 million capital program which includes drilling and completion of 19 (17.6 net) wells which is expected to increase production 3% over our 2021 average production rate;
Investment of $23 million for ARO which is approximately 250% of our required spend continuing with our ESG focused activity;
Average annual production at approximately 22,000 boe/d.
So I am not sure that they put net debt zero as an absolute goal.
I am just spit balling so not saying they are buying back but....you never know.
GLTY and all
JayBanks wrote:
JayBanks wrote: Ummm... your extreamly wrong on that...
The extra penny of the dividend costs the company around $19 million per year, and as per the last Finacials they have $53.1 million in bank debt ($76.2 Net Debt)...
Unless the world of maths has changed that I don't know about:
53.1 minus 19 does not equal 0...
I'm pulling bad numbers, I should have pulled numbers from Q3 2022 (Sept 30th) to properly address your claim...
At that time Bank Debt was was $42.167 Million, Net Debt was $62.067, Share count was 155.737M
1 cent reduction dividend x 12 months x 155.737 M = 18,688,440 or $18.7M cost for every penny on the dividend at the time...
Even if they paid that $18.7 million to debt rather than shareholders, the Bank Debt would not have been eliminated now with all that has transpired in the year.
(I also notice I get different numbers for the dividend cost depending which numbers I pull from and how I work the calculations based on the different areas of the financials, I got 18.3M per penny a couple weeks ago using the actual paid numbers from a recent quarterly, but the .4 difference is likely due to the (000s) somewhere and it's not really material)