Whitecap Resources Inc T.WCP

Special Dividend

[Olliethegoalie]

Any thoughts on a special dividend coming with earnings?

[barneyj44]

I would think 0% chance of a special dividend.  Whitecap pays a generous dividend as it is, any extra cash would be used for share buybacks and debt. Companies that go the Special Dividend route usually pay out smaller quarterly dividends like Tourmaline...

[jleer42]

No, if there is anything extra it will probably go to buybacks/debt. Crystal ball says there might be an 8-10% base dividend increase in Q4. 75% of 10% share purchase and 5% production growth being the back of napkin calc. .75(.1+.05)=11%

[jleer42]

That's Q4 2024...

[Whynottoday2]

..... a WCP special dividend and a disruption in the Strait of Hormuz have about the same chance of happening; it's not zero!  https://x.com/lastcallcnbc/status/1743075362379125035?s=46&t=q57skM4VTtsZAHbE5YtlxQ

[Anschutz]

Depend8ng what the judge decides on the 22nd regarding the redacted and severed Epstein files, I wouldn't be surprised if we see a western nation ship taken out in the Strait of Hormuz.  Are exocet missiles still a thing?  LOL.

[barneyj44]

I would love a special dividend, don't recall Whitecap ever offering one and I have been a share holder for many,many years.

[Olliethegoalie]

some good points. I think that a 5% increase in production should increase freecash flow by more than 5% shouldn't it? The fixed costs stay about the same. The amount they buy back will also increase cash flow per remaining share. If they buy back 10%, the cashflow per share should increase 11%, correct?

[jleer42]

Your numbers are correct, I would rather be conservative. I took 25% off the top and then rounded 11% down to 8-10%. Stuff happens and planning on everything working out means I miss actuals. Last time I looked I think they were on pace for around a 9.4% stock repurchase over a 12 month period and who knows what will happen with free funds flow and stock price. End of the day I expect/hope for a

[Ocalaman]

Currently with thier po ration at 77% for 2023 ( amongst the lowest ) going to 94% in 2025 ( amongst the highest) in thier catagory and TMX startup dates in doubt which reduces any planned net back increased from decreases in wcs differnetial I am pegging the chance at 0.  My thought would be continued buybacks and cancellation of shares will be the shareholder return game plan.

[Anschutz]

Agree.  In actuality, a regular monthly dividend that is increased based on company performance is preferable to special dividends.  A regular monthly dividend communicates that management has a good handle on the company, understanding of the environment, and confidence in their future predictions.  Companies that use weasel language with investors about providing special dividends

[goldens]

Agree with you on that one. The special dividend is only good if you hold it when they pay it. Been holding these guys for a bit now and very happy with the management of the company. They have the debt where they want it and the dividend is safe. On another note we got a head & shoulders bottom with a 9.60 target so perhaps we will start to move back towards the $14 consensus target. GLTA

[Tothemoon2]

https://boereport.com/2023/12/20/mystery-buyer-of-plato-and-forgan-viking-assets-from-baytex-is-revealed/ Any extra money was spent for this.

[Tothemoon2]

Calgary, Alberta–(Newsfile Corp. – November 27, 2023) – Baytex Energy Corp. (TSX: BTE) (NYSE: BTE) (“Baytex”) today announced that it has entered into a definitive agreement to sell certain of its Viking assets located at Forgan and Plato in southwest Saskatchewan, effective October 1, 2023, for $153.8 million. The disposition is expected to close prior to year-end with net proceeds