Veren Inc T.VRN

Eric Nuttall on BNN

[CashHungry]

I thought Nuttall's comments about CPG were very interesting.  He owns the stock and believes it is dirt cheap - I believe he said he calculates EF/CF of 1.9 at $80 WTI which would make CPG dirt cheap even in comparison to the other names he likes.  But his big concern is that he does not think that manegement appreciates the critical importance of returning meaningful funds to share holders and he hasn't decided what to do with the stock...

In all the years I've followed Eric I can't recall him being so candid about the frustration of management for a stock he currently has a position - although it is hard to know how large that position is because it is not in his top 10.  He finished his comments by saying he still has some work to do on management.

My take is that I am sure managment will listen to Eric, but they know Eric is a trader not an investor, and therefore may not take their marching orders from someone who flips in and out of their stock based solely on opportunistic pricing.

I am happy that Eric didn't pump up the stock, because I still intend to add to my position at some point in this quarter and I would love it he dumped his holdings driving the price down to the mid fives - at which point I will jump in big time by selling some portions of recent winners such as Suncor.

I think CPG is an amazing investment at this price and before long it will be generating so much cash they will have no option but to return a big chunck back to shareholders.  For now I have no problem with management's cautious approach by focussing on debt repayment and developing their assets and investing in efficiencies.   The dividend increases will be coming soon enough.

If oil stays at these levels throughout much of next year this is a $12 CAD stock by YE '22.

[CdnOilObserver]

I agree with much of your comments CashHungry.  I also agree with Nuttall's comments.  If CPG Management does not get on board with return profit to shareholds, then I dont think $80WTI or higher will matter much.  $0.12 was a doable dividend at $60WTI.  At $70WTI or better, CPG Mngt must demonstrate they are investor friendly, or the capital will flow else where and the

[LiquidOctopusV2]

The management really needs to articulate the buyback and/or div plans.  I wrote them about it, they don't write back.  I would request that every member of the board politely write CPG, stating you are a shareholder and you want them to lean into better shareholder rewards. 

[BigJoe778]

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