Cenovus Energy Inc T.CVE

Buying Back at $19 instead of when shares were $2.55

[RagingBull3]

Great decision making!     

Sending oil off the West Coast, down through the Panama Canal and back up the Canada's East Coast.  

Sounds like another Great Decision.

Selling off Retail Gasoline Stations for what many say was Dirt Cheap..... at a time when inflation rocking up and gasoline selling near all time highs..

Sounds like another great decision.

Do you see a pattern here???

Anyways.... High Oil Prices Lifts All Boats..... no matter how bad decisions are made.

All just my opinion/view/thinking/guessing.

[BillKollector85]

Please oh wise and powerful one tell me a canadian oil sands company that was doing stock buybacks during march 2020 lows Looking throught the lens of higndsight is poor metric especially since you're overlooking prior events that were considers quite serious at the time. No one knew how 2022 would look back in 2020 Apparently the one cenovus site made over 300 million in profit last month

[RagingBull3]

Yes, back then it would be dicy, as I posted before on this subject matter.... But if you didn't think CVE was going Bankrupt, if you bought shares..... THEN YOU BELIEVED THE COMPANY HAS A FUTURE...... Then it's not far fetch to think to buy back shares when they are $2.55.   All the company had to do was cut back on Expense, CapEx and use that money to buy Shares. Right

[Volkomm]

The CEO & board would be terfed if they did that. These companies were staring down into the abyss at that point of time. They didn't know if/when the markets would turn around. Anybody who says they know where the price of oil is going is full of shyt. All companies were in survival mode. Cenovus was in very very bad shape with crippling debt. You can only cut back cap ex so much in this

[RagingBull3]

They were staring down the Abyss because of how they managed the company.    No Mature oil company should have been in that situation... All just my opinion/view/thinking.

[SHayden]

While it's true no one was going to do buybacks at that time, CVE's financials were ok, don't be dramatic. They had a good enough balance sheet to weather the storm for years of low oil prices. They just had the worst balance sheet of the Canadians majors.

[RagingBull3]

Refinance Debt at lower rates and longer Maturity.... Which they did. Cut Expense, Cut CapEx....Cut Bonuses Buy Back Shares at $2.55 with all the extra CASH FLOW...gained from cuts.. How many BILLIONS could be Temporarly Cut from CAPEX?????   There was only about 1 Billion in shares I think............Wasn't NUTTALL tooting this fact that most of the oil companies could buy back all

[Volkomm]

Sure, they weren't going to go bankrupt in 2 weeks. However, a company that is languishing the toilet bowl spinning around with no end in sight isn't a great position to be in. I got to hand it to them though, their acquisitions were ballsy and was looking rough for a period there but it slingshotted them big time with this turn around. Addressing the other poster. You cannot cut capex

[RagingBull3]

A more accurate perspective on your example would be if the Bank all of a sudden offered you to payoff your Mortgage 15 cent on a Dollar.    eg.. $2.55 instead of $19.      What would you do??? Your hourly wage cut 30% and hours reduced.....you're short on cash... but you have an opportunity to payoff/down your mortgage 15 cents on a dollar... I tell you what I would

[oilandgasmick]

Yes exactly right. There was a real question in the industry as to whether CVE and HSE could survive when the WCS price turned negative. How could you possibly justify buying back shares when the company couldn't live within existing cash flow and was taking on debt? The household is broke but let's make extra payments on the mortgage? Anyway no point arguing with some of the mentally

[RagingBull3]

OK, what if for some crazy reason, given everything the same but what if Share Price dropped to a PENNY.      What if Back in March the Share Price went to $0.01.... One CENT.    Worth Buying BACK????? If YES.... How about 2 cents????   10 Cents??????   $1.00???????   $2.55?!!!!! Meanwhile spending Billions in CapEx and Expenses... No

[1234bmth]

This story may be the answer to this,  A kid told his dad my favourite toy is at $5 can I buy it. Dad said no, it is expensive next day kid said it's at $1, dad said no, it is expensive the third day kid said it is at 50 cents, dad said no, it is expensive. The fourth day the kid was sad and told his dad you didn't let me buy it at 50 cents and now it is $15, his dad give his kid $15

[RagingBull3]

But the Kid says "But Dad, when the toy was 50 cents, we spent $30 eating out at McD's as usual on sunday instead of eating at home, couldn't we have cut back on expense of eating out one day?" All just my opinion/view/thinking

[rad10]

Lol - this refers to the time when I theoretically could have filled my swimming pool with WCS, struck a match, and someone would pay me to do so?   The producers were in survival mode. Let me guess which poster started this thread....  the one who rages, and wants his preferred shares redeemed at par?

[RagingBull3]

I grant you this.... I bought the Preferreds and not the commons back in March 2020.  But, you can say the same thing the other way around..... You're paying $19 share now, but you don't know what the future holds. All just my opinion/view/thinking

[mrbb]

something is manipulating the raging rabid brain