RE:RE:RE:RE:RE:Break Even Cost Per barrel?I agree WCP is one of the best managed. My point is that the yield changes based on dividend paid in relation to share price. Share price drops and yield goes up. Management response to declining share price and rising yield is to say they think the dividend is too high. Thereby creating anxiety & disuading investors from buying due to fear of a dividend cut (worst case) or no further increases (best case). Why not instead say our share price does not reflect the value of the company, and that yield appears artificially high. A higher share price will result in a lower yield if dividend remains unchanged.
Will buybacks raise the share price? Perhaps. Unless they increase debt and print millions more shares vis-a-vis VRN.
My point is that the dividend is an important factor in stabilizing the share price. Why make a statement like this and imply that shareholders are over compensated? Especially in this environment when management teams continue to personally reap millions and insulate themselves from the financial impact of ESG and sector divestment.
InvestSmarter wrote: Huh? Everything is being returned to unitholders, in form of dividends, buybacks, and improving the balance sheet. 7%+ eligible dividend is excellent. WCP is one of the best managed O&G Cos. They can't control the price of the shares, but they can take advantage of it through buybacks.
Anschutz wrote: As as shareholder this comment by management seems wrong. What exactly is the incentive for investors, if there is no meaningful return? The share price has been in the dumps for a decade and very likely isn't going anywhere considering the ESG/NGO attacks on the sector. The only way we will ever see a respectable share price ever again, is when leadership & Boards come down from their gilded towers and share the wealth with investors. The dividend is about 7.4%. This is grossly inadequate in relation to share price volatility. Raising the dividend will reduce volatility as it incentives investors to hold during periods of share price decline. Don't get me wrong. It's good to see share buy backs. However shareholders should not always be the ones who bear the pain when management teams and boards opt to blow their brains out with bought deals. Perhaps it's time that management compensation be linked with performance based on the share price. 7% is barely adequate to hold any Canadian E&P in the current environment.
InvestSmarter wrote: Thank you. I have confirmed this from the Q2 Earnings Transcript:
Thanks for that question there Patrick. Yes. As we go through the list of returns back to shareholders here the dividend at that .73 they're sustainable down $50 WTI. The yield from our perspective is too high. So there's certainly no rush for us to increase the dividend at this time. The priority would be around share buybacks. And that's why we've allocated the $200 million towards buying back our shares.
barneyj44 wrote: The company has stated many times over , dividend is covered down to $50 o
il.