Post by
Wildfury on Jun 28, 2022 7:34pm
WCP buys XTO Canada for 1.9 Billion
As earlier mentioned in another post, XTO parent companies, Exxon, Imperial oil. Grant would not be buying if the company felt that oil prices are going to plunge. The media, politicians, the woke keep trying to take oil prices down but demand and supply is what rules the price. Did they over pay? WCP'S debt was going to be under $800 million after the 2nd quarter results or lower, now it's going to be over $2 billion. They just added over 30,000 bpd production with a good mix of condensate & NGL with extra nat gas. The divy also starting in July will be increased to. 0367 cents per month increasing even more in the near future. What does this mean for buy backs? Hopefully they don't dilute by issueing more shares. This has now become an upper tier oil & gas company and I'm not worried about the current stock price, next year should be north of $20.
Comment by
Wildfury on Jun 28, 2022 7:59pm
Just wanted to mention, the divy once debt milestones are reached by 2023 will eventually be increased to 73 cents per share on a yearly basis, as stated by Whitecaps news release equaling approximately..068 cents per month. I think they're being conservative with those numbers, I'm expecting at least. 10 cents per share per month, crossing fingers.
Comment by
Leishy277 on Jun 28, 2022 8:03pm
Yeah was nice to see some actual guidance on the divvy mentioned. Probably be red tomorrow just because... but I'm happy otherwise.
Comment by
pierrelebel on Jun 28, 2022 8:07pm
I do NOT like the deal. It goes contrary to the original concept of building up free cash flow to buy back shares and increase the dividend substantially. This extra fraction of a cent does not do it for me. Will take a few days to decide whether to hold or sell and invest somewhere else.