Post by
PlutusofCrete on Jul 04, 2024 4:04pm
Divy Sustainability
Hi folks, I recall when Jeff Tonken brought out the big boy $0.80 divy he claimed it was sustainable at $3.00 AECO and $75WTI.
With our new $0.40 divy - what the the sustainable commodity prices for this dividend? I have a feeling it will be at $0.20 next year.
A lot of talk on twitter how the future development costs for next year's production exceed the currect FCF.
What does this mean for us?
The way Jeff Tonken left us shareholders was a bit disappointing...did amazing things and then went out with a devastating divy cut.
Bittersweet.
BTW. HH Spot price is flat $2 from YCharts website.
Comment by
barneyj44 on Jul 04, 2024 6:48pm
Plutus you talking a dividend cut is that why you sold yesterday?
Comment by
PlutusofCrete on Jul 04, 2024 10:57pm
Yes sir. I was blind before, kept beliving in winter and the future strip pricing...and took a hit in Jan when they did the last cut. I don't see the strip holding up in the fall...and afraid of another cut in Jan. Just plan to buy the dips and sell the rips as they come and go before the winter.
Comment by
Maxmoe on Jul 08, 2024 2:11am
Good luck with that. I'll just take the elevator with everyone else. Record heat = going up. Flippers come and go. My fomo exceeds my downside worries. I've never been a proponent of buying cyclical anything for the yield. It's just a nice bonus in this case.
Comment by
PlutusofCrete on Jul 08, 2024 1:26pm
Just saying becareful - I was burned before....HH and AECO will not play out as the futures show. More downward risk in the short term. Long-term go ROCKIES LNG partners.