Obsidian Energy Ltd T.OBE

Dividends

[Hendrick3]

I had an exchange with Loukas and dividends are probably a latter half 2022 consideration. Under the current financing arrangements they would not be able to declare a dividend.

First priority is bringing debt down to target levels which I believe is $300 million. Secondly they are renegotiating or refinancing debt which should be completed in first half 2022. My guess is that those two events line up such that 3q dividend is a possibility. Loukas indicated after the financing hurdles are crossed, a dividend is the first priority. Stay patient there are good times ahead.

[JohnJBond]

As of June 30, 2021, BTE had long term senior notes of US$46.3. They all matures on Nov 30 2022. This long term notes contain various caveats, one of which will be no dividends. So that long term debt will have to be bought back, or redemed on maturity, before a dividend can be paid.   I'm assuming it can be bought back.    In Q1 2021 BTE repaid US$1.1 million

[Hendrick3]

This is a great summary once you realize BTE = OBE but I know what you meant. I agree that if the dividend is delayed a couple of quarters for Financing issues, the eventual dividend will just be larger. 

[JohnJBond]

Its unfortunate you can't seem to edit these posts after they submitted.   In the old days we had a secretary to handle the gramatical stuff - just shows how important they were. I agree OBE presents a rare combination of risk/reward right now - and even better, its managed by a portfolio manager who'd probably like to get the share price up so he can get back to his old job

[Hendrick3]

I think Front Four's cost base is around $10 CDN. Given the current metrics, I doubt they are in this to break even.