RE:DividendWaterous said Strathcona is spending 100% of its free cash
flow to reduce debt and win an investment-grade credit rating.
The company is currently rated B1 by Moody’s Investors Service,
four levels below investment grade. The focus will then shift to
returning cash to shareholders, which will almost certainly
include a dividend, he said.
Waterous said he expects shareholder turnover and for the
price to decline as Pipestone Energy investors exit.
“Small guys rush out, and the bigger guys come in more
slowly,” Waterous said. “It takes time to be able to have
larger-cap investor types develop confidence.”