RE:$68.10 vs $80.40good day lovehockey
For GXE is is important to look at the price of western canadian select (WCS) since a large percentage of GXE barrels are sold in that classification. And WCS is up as well. The value of the Canadian dollar is also an important factor of financial success with any Canadian petroleum producer since their barrels are sold in USA$ and converted to $CAD. So the weak $CAD is helping Canadian oil and gas, in fact, it helps any company exporting to the USA. I remember the prior CEO said that if WSC is around $58 and the $CAD is 74 cents that GXE could afford the dividend. This week WCS is in the low to mid $60's with a 69 cent $CAD. My opinion is the $CAD will stay weak but the price of WCS or WTI is anyone's guess, but at today's prices GXE would be doing fine if we were still with the status quo. If the NO (against) win, I hope management goes back to drilling (especially on the land which is supposed to go to Lotus Creek), and do some share buy backs. At 50 cents per share management should buy back every stinkin share that they can. Heck at 50 cents the market cap of GXE is only $130 million $CAD. Last year GXE paid $16 million in divdends that come from cash flow!!! So if GXE were to redirect last year's free cash flow from dividends to buy backs GXE could repurchase well over 10 per cent of its share count. Management is probably spending all of its time trying to get this vote in their favor, but I hope their is someone in the office looking at the forward price of WCS. If WCS is trading above $60 for the next six months I would advocate starting to hedge some production since that is a reasonable price for WCS.