Q: Hi 5i
With reference to brians question, is it Whitecaps intention to continue to pay down debt? At the current rate when would they expect to be debt free ? What happens then with share price ect assuming oil continues on the current path.
thx
With reference to brians question, is it Whitecaps intention to continue to pay down debt? At the current rate when would they expect to be debt free ? What happens then with share price ect assuming oil continues on the current path.
thx
5i Research Answer:
WCP 'could' be debt-free in a year, barring more acquisitions. Generally, valuations do improve with financial strength. At the very least, the dividend becomes more secure. Shares have done better than some in the sector, but we need to see commodity strength for any real rally. We think it is attractive, but it will remain cyclical.