RE:RE:RE:RE:RE:Buybacks & Divvy Should be a great year ahead if they are focused on getting the stock up near that exercise price.
Normally energy sucks heading into an American recession but it seems the market has fully discounted it in the stock prices. And there is lots of evidence that any downturn will be minor now.
Haven't heard much about LNG Canada lately but now that fall weather is here gas prices are well off the bottom. If nothing else lng Canada should prevent the nasty summer gas prices we just had repeating again next year.
US shale has finally slowed
C$ finally backed off a couple pennies
interest rates trending down
maybe a conservative government soon which should at least lower some costs.
will be interesting to see how Pat manages funds flow this year. Too bad the big cardium program last year ran into poor gas prices this year. But now he can easily move about 10 million per quarter around with little impact on production.
That should be enough to reduce debt, implement a dividend, launch buybacks and drill the Charlie Lake property. 40 million - 15 for buybacks and dividends, 25 million to reduce debt.
My guess is that the Montney stays around 1.5 wells per year until something changes. Oil Price spike, gas price spike etc.
My two latest bright ideas
1. instead of pursuing a sale of the Montney, pursue a JV. Sell a 40% non-op position for 60-80 million in drilling funding over 2-3 years.
2. Arrange another debenture for about 75 million but this time in US funds. Could probably drop the coupon 4-5% and exposure to US dollar movement might be timely.