Jan 19/2022
Whitecap Resources : Re Dividend
Whitecap in its January presentation makes mention that with oil trading at $75 dollars WTI they have enough free funds flow to support the current dividend 6X over .
Further to this they also are publishing that at 40 dollar WTI they can fund Cap-ex as well as the 27 cent annual dividend .
With oil trading at 85 dollars , the free funds flow is approximately $ 225 Million more . Except to see the dividend doubled possibly before earnings are announced as they did the last incrsse when they raided the dividend 40 % approx.
Today another house has raised It's price target thet
being TPH who are known to be conservative in there analysis. This adds to the growing fan base of investment houses . Raymond James $ 12 dollars - National Bank 14 Dollars , the street consensus will rise slightly once TPH Target is factored in , but pre- announcement it was $11.26 .
Final analysis - in a world where the Price stays where it is for the next month witch is highly unlikely , you will soon have close to a 7% monthly dividend based on the recent trading range . It's worth repeating that at 75 dollar oil of nothing else haopens based on there 50/50 free funds flow split where half goes to debt , production increases , and accretive tie-in acquisitions , and the other half going to you ( myself - dissclamer ) . When they say they can pay the dividend 6 times over at $75 dollar oil , this suggests a triple ( not a typo and check the facts ) Of today's 27 cent annual dividend , while the company is growing the business , or paying down debt with the other 50% free funds flow , therefore increasing over all free funds flow , and value per share.
Well the stock is taking a breather due to some hard to argue profit taking , it is a good price , and time to add .
A fully loaded train starts off so slowly. However once it's moving it's equally hard to slow down . Things are running smoothly over at Whitecap and this shareholder says Choo Choo.
Do your research , don't listen to me , and best of luck.
source of information is all on the company's web site under January presentation.
Craigster !!