RE:RE:RE:Irving Oil purchasing Cenovus Oil Those are definately concerns for investors. I know everyone has been waiting for the targeted debt level to be reached and for 100% FCF payouts to begin including me.
I am curious about one thing though; for how long? When do the returns to shareholders become enough and management is required to turn their focus back to growth?
Is it even too soon to even ask given that they haven't even begun yet?
1 and a half years after the Husky acquisition CVE was trading at 2.5 times their pre-acquisition share price.
Another 1.5 years later or 3 years after the acquisition here we are still at the same price...ish.
Don't get me wrong over 80% gain per year works for me with a little bit of divs and special divs sprinkled in for good measure, but maybe this company and team is better at acquiring assets than running them? Admittedly I'm not sure they have been given the proper lead time to show what they can do with the assets they have or they have and they are just about to start to bear fruit.
So what if they pay us it all for a year or so? Is that enough?
One thing I forget to mention or take into account are the east coast assets that require very little transportation to an east coast refinery.
GLTY and all