Oil producers are full of money

Of course the article is about Canadian Oil producers. I suppose at least some of the US guys are probably doing OK as well?

Anyway the big question is what are they planning to do with the cash? In past times they often poured it down the drill hole (invested in increased production).

I normally buy the pipelines as they tend to make money regardless of what everyone else is doing?

I transferred the maximum contribution into my TFSA (Tax Free Savings Account) this morning. Will probably load up wife’s account next week.

At least one producer (that I used to own) says they will increase dividends and pay off debt rather than invest in increased production. Current dividend is ~ 4.75%. Sounds like a plan to me.

Anymouse

https://www.thebharatexpressnews.com/oil-producers-are-full-…

Oil producers are full of money. Now what are they going to do with it?

Radio-Canada News

By The Bharat Express News -January 20, 2022

Canadian oil and gas producers are awash with cash for the first time in years, thanks to crude prices that have returned to multi-year highs after collapsing at the start of the pandemic.

Revenues are expected to hit record highs this year if oil prices remain high, following a long period of belt-tightening and industry-wide spending restraint.

The sting of a sharp downturn in the spring of 2020 is now largely in the rearview mirror, as industry leaders find themselves in the enviable position of deciding what to do with the cash pouring into corporate coffers.

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Anyway the big question is what are they planning to do with the cash? In past times they often poured it down the drill hole (invested in increased production).

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If they were smart they would invest in renewables.

Jaak

I transferred the maximum contribution into my TFSA (Tax Free Savings Account) this morning. Will probably load up wife’s account next week.

At least one producer (that I used to own) says they will increase dividends and pay off debt rather than invest in increased production. Current dividend is ~ 4.75%. Sounds like a plan to me.

Well, I got busy arranging travel insurance and sorting out a glitch in the final closing of my trading account. Some rely on skill, others luck. After yesterday the divy is now 5.06% due to decline in share price.

Anymouse

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At least one producer (that I used to own) says they will increase dividends and pay off debt rather than invest in increased production.

That seems to be the theme across the board.

BMO’s report says the North American oil and gas sector is enjoying its strongest financial position in years.

However, a big difference this time around compared to past years is that the companies are opting to spend on dividends, share buybacks, and squeezing more barrels out of existing assets instead of taking on new, large expansion projects.

https://oilprice.com/Energy/Crude-Oil/Canadian-Oil-Companies…

Most of the companies I own, or follow, have plans to initiate or increase dividends as well as stock buybacks after debt reaches a certain level. Many of them will hit their debt targets middle of 2022, if oil stays above $55.

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drdrab: That seems to be the theme across the board.

Most of the companies I own, or follow, have plans to initiate or increase dividends as well as stock buybacks after debt reaches a certain level. Many of them will hit their debt targets middle of 2022, if oil stays above $55.

Yup, I bought a significant to me position in SU.to near the open this morning with an over 5% yield and promising to increase the dividend. Price is up over 3.5% AIT since I bought. This is the first oil producer I’ve owned in some time but it is starting to look like better days ahead for travel and last I checked ships, airplanes and even the vast majority of cars still burn oil to move people around? OK I also used all of the cash that I put in my tax free account yesterday. }};-D

Tim

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