Strathcona Resources Ltd T.SCR

Exciting times ahead for SCR.

[CashFlowADay]

Are we excited!?!?! 

 

By end of Q2 they will be below the $2.5B debt target then the mountains of cash they are making can start flowing to shareholders via buyback and divy. 

 

https://x.com/AssetTraveller/status/1755646356696244260?s=20

 

+$500m to growth capex..

[uwebb429]

WIth only 9% of Strathcona shares publicly available for trading, buying back shares is the last thing SCR should be doing. I am not a big fan of dividends either but at least that might attract some new investors.  Best thing to do would be to keep paying down debt. Maybe then in a few years SCR's long life assets willl get a valuation similar to MEG. 

[Bosoxpj]

That is common thought, however, I disagree. SCR buying back shares with a divi would  elevate the  share-price  in a hurry.  This would increase their valuation to make it more economical to make another all share acquisition. We get bigger and so does the float.   only ones who would lose are any old PiPE shareholders that sold or will sold. just my thoughts. &

[pierrelebel]

uwebb429 wrote: "... buying back shares is the last thing SCR should be doing...." I agree. "...Best thing to do would be to keep paying down debt...." Yes and make another small acquisition paying in SCR shares.  While that would cause dilution (never a good thing) it would add to liquidity (and that is a good thing) that may attract institutions eventually.

[Bosoxpj]

Question for you Pierre and uweb. Why make an aquisition using shares to increase float when our shares are so undervalued right now or even pay down debt when you can do that anytime?  Seems to me buying shares back at  a shareprice significantly under the pipestone aquisition price every lowers the cost of the pipestone "piping" as Strath would basically only be retiring

[CashFlowADay]

Step 1.  Get Debt down to $2.5B + Retire $150m in derivatives.  - Will be acheived in the Spring.    Step 2.  Shareholder return plan to drive the share price up.    Step 3:  Strategic acquisition with shares that increases float and fits into company direction.   Step 4: Win.