RE:RE:RE:RE:The worst investment in O&G patch?ANSWER : its very straight forward-dividend was decided when nat gas was TRIPLE the current price..note the CEO called this the dividend policy for 2023 and it looks like he wants to keep his word.
YES-at these prices, debt is being used for the divi
almost dollar for dollar.
BUT...take a look at the plans for 2024/2025-BIR's OUTPUT will continue to increase and they could sustain the divi , with no more debt increase (even paying some of it down).
Market is skeptical but note nat gas prices are off summer lows and we could soon see a $3 handle...More importantly do you really think the CEO is out to destroy the company he built?? Simple, if gas prices don't move or fall-i expect the 2024 divi to be cut 50% to restore a bit of confidence and thats it..see you at $20 in a years time...dwdc