Shareholder value enhancement - CPG
Does anyone want to speculate about when and/or to what degree CPG will begin a significant dividend payout?
My prediction...They produce ~48 million BOE per year. They have ~$30 breakeven point. They hedge around 38% of production for 1Q2021. Hedges diminish Q2 and Q3. They are getting $10 per barrel over 1Q21 expectations and it may improve. So I think they may produce ~$1.6 billion in profit in 2021.
I expect most of that money to go toward debt reduction (~$900 million) and share buy back will likely be ~$150 million. That leaves (~$550 million) of profit that could be used to re-establish a significant dividend schedule.
I think they planned a $.36 per share (.03 per month) dividend before the windfall of higher oil prices. Now I think the profits could be enough to pay a $1 per share (.08 per month) on 2021 performance and they could announce this plan on February 15, 2022.
Don't know how to integrate the Duvernay acquisition into the plans...
Anyone else have a projection?