A few words from Paul Colborne about their plans for the extra cash flow after WTI went up today.
https://calgaryherald.com/opinion/columnists/varcoe-canadian-producers-oil-opec-production-cut Surge CEO Paul Colborne said the production cut by OPEC countries should accelerate the expected tightening of supply levels and global oil demand this year, pushing prices toward $100 a barrel.
“There’s going to be massive draws on inventories during the driving season and that’s the real story here,” said Colborne, who expects WTI crude will average around $95 a barrel this year.
“It’s a juggernaut, there’s nothing to slow it down.”
For Surge, every $1-a-barrel change over the course of the year increases its cash flow by about $8.7 million.
“We will just keep paying debt down and probably keep bumping our dividend, but we’re not going to race out and do a bunch more drilling,” Colborne said.