RE:RE:RE:RE:RE:Divvy: not sure what's expected but likely between 1&2 cent Agreed. Not much point in mergers with the stock at this price. Unless they are very small cash tuck-ins. At 7-8 bucks mergers start to look great, although I suppose if the sellers have really dropped their pants on the prices anything can be made to be accretive. And they are going to need to acquire both inventory and some tax shelters. Taxation is going to start to bite.
Would prefer buybacks at the moment -it would fix the sloppy share price and maybe improve the share price enough that transactions are worthwhile. It would also cost peanuts. Seriously 5% NCIB would be under 10 million.
Stay flat production in the cardium - for sure. Maximize the cash flow out of the assets right now. We are still mostly sub 12 months well payback at current prices despite the brutal gas price. Kind of amazing really.
At some point there is going to be a window for longer hedges in the 3-4.00 range as LNG Canada comes on and industrial demand ramps in Alberta this year. The cardium will look great then. I was reading a couple of notes and even Schacter thinks AECO will be the place to be selling gas into shortly. The Cardium really shines with 3.00 plus gas. Should be a free cash flow generating machine then.
the Montney economics will be far better but they need to add or contract processing. It is a good environment to keep picking off small bits of acreage at a cheap price. They have done a great job so so far with their 45 sections.