Obsidian Energy Ltd T.OBE

Dividend yield

[JohnJBond]

The market has responded favourably to CJ's announcement of a 60c dividend.    The price has been pushed up to achieve a 6.4-6.5% yield 

prior to a dividend hitting the market, as discussed elsewhere, the potential expected yield range was 5-10%.    It's very positive to see CJ get priced towards the lower range, and improving (the yield got as low as 6.37% today

I expect the market to give OBE a similar dividend yield as CJ

[Kramerkarma]

By the time we can do a dividend it'll be closer to 3x what CJ did ... thats what got me excited!

[JohnJBond]

Me too. It looks to me like they can do about $150 million a quarter in FFO in Q3 and Q4 - ie about $300 million in H2. Making some assumptions. Assume Capex is increased from $45 million to $150 million in H2 (thats a generous increase) That leaves about $150 million in free FFO in H2. If they paid out $82 million in dividends - that would leave about $68 million for corporate purposes