Devon, years ago instituted a variable dividend, AOI should do the same. I mean, Prime already is doing this. If they were to get the house in order and say 20% of all prime dividends in each quarter are distributed to common shareholders it would bring in way more shareholders. If oil hits $100 great, if oil hits $40 less liability.
Given Prime has instituted a hedging program this wouldn't be all that volatile or unpredictable. What it would mean is Prime is the cash cow and it can move the company forward by retaining 80% of its distributed cash.
buybacks are not the way forward as the ROI is negligible as the company used RSU's to dilute as much as they bought back.
If you look at this investment it's much better to look at your basis and then subtract dividends received.
This company teetered on the brink of collapse after buying the Nigerian assets when crude plunged. They got lucky Prime hedged things. They've learned from this but honestly so has everyone else. So Valuations are not the same and the great deals KH wanted never panned out.
I think there are many catalysts ahead but establishing even a quarterly dividend is more normal for this type of company.