Although TORC's formal 2016e capital budget includes a smaller capital program yet delivers production guidance that is in line with our prior outlook and implies a <100% cash use to cash flow ratio on our current price forecast, an unchanged dividend policy will continue to appear challenged in the context of the forward strip, at ~135% cash use to cash flow (net of increased DRIP/SDP participation). Trading at a current yield of ~12%, we believe the market was pricing in a dividend cut, so the ....
15 Dec 2015
TORC OIL & GAS LTD. (TOG) ANNOUNCES 2016 CAPITAL BUDGET AND PRODUCTION GUIDANCE; MAINTAINS ANNUAL DIVIDEND PAYMENT
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TORC OIL & GAS LTD. (TOG) ANNOUNCES 2016 CAPITAL BUDGET AND PRODUCTION GUIDANCE; MAINTAINS ANNUAL DIVIDEND PAYMENT
- Published:
15 Dec 2015 -
Author:
Cody R. Kwong -
Pages:
3
Although TORC's formal 2016e capital budget includes a smaller capital program yet delivers production guidance that is in line with our prior outlook and implies a <100% cash use to cash flow ratio on our current price forecast, an unchanged dividend policy will continue to appear challenged in the context of the forward strip, at ~135% cash use to cash flow (net of increased DRIP/SDP participation). Trading at a current yield of ~12%, we believe the market was pricing in a dividend cut, so the ....