Bullboard - Stock Discussion Forum Granite Oil Corp GXOCF

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Granite Oil Corp is a Canada-based oil producer based in Calgary, Alberta with lands and operations located in southern Alberta. The company is engaged in the exploration for and exploitation, development, and production of oil and natural gas. Its Alberta Bakken Properties are located in southern Alberta at the south of Lethbridge.

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OTCQX:GXOCF - Post Discussion

Granite Oil Corp > Expect another dividend cut

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Post by SIGG1 on Jan 24, 2018 12:54pm

Expect another dividend cut

Getting near 10%. This is not sustainable.
it will get cut again and stock will drop below $2.
This is game over for GXO. Have you ever seen such a piece of shiit?

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Comment by Sjakkspill on Jan 24, 2018 10:16pm

The percentage of the dividend doesn’t mean anything. What matters is the sustainability from cash flow. With a $34.50 CA WCS differential, rising dollar and falling production after a disappointing 2017 drilling program, figure it out. According to my calculations GXO needs about a $53 CA WCS price while it’s currently a little under $47. Plus they need to get production up again. They could run ...more

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Comment by dalerules88 on Jan 25, 2018 1:22am

I agree with you on most fronts. I don't think drilling was a disappointment per se in 2017 - they tried 125m spacing and initial flow rates were good, just dropped off too fast - clearly they're too close together or not enough pressure. But probably good that they tried it, otherwise they would have been wasting valuable resources. Timing migh just work out perfect - cash flow didn't ...more

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Comment by Sjakkspill on Jan 25, 2018 8:50am

If they should cut the dividend again right after the last cut management would look like they have no clue so that’s unlikely. I’m a little worried about Q4 results but the sales made should make the balance sheet look decent enough. They have been waiting on increases in recevoir pressure before starting the 2018 drilling program and I think that they can get production up quickly once ready to ...more

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Comment by lineric on Jan 25, 2018 3:44pm

Hopefully, today's drop to 2.77 will encourage the Shorts to finish with their covering. I watch which brokers are involved in the end of day price suppression. There has been an aggressive manipulation that is ongoing. The shorters do have to keep the price as weak as they can get it. This looks to be an easy target. But they do have to cover and it appears they are slowly doing that ...more

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Comment by Sjakkspill on Jan 26, 2018 7:29am

I would say that the drilling program for 2017 was rough enough. They drilled 8 wells. One was a completion well to test new technology which the company was pleased with although the well was poor. 4 wells turned out to have been drilled to close together (125 meters). In addition to unfavorable decline rates the oil to gas ratio was less than desirable. 3 were very good.Took a big gamble on ...more

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