Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Dividend investing for retirement -- Ignore unavailable to you. Want to Upgrade?

To: Spekulatius who wrote (13239)	12/4/2012 1:31:30 AM
From: Paul Senior	Respond to of 34328

Petrobakken: "Petrobakken, with their high debt load and heavy investment in new fields, cannot really afford the high dividend they're paying, imo." Perhaps you are correct. The dividend (.08 monthly since 10/'09) does seem sustainable to me though, from what I see and from my understanding of it. "Our monthly dividend of $0.08 per share has remained constant since the Company's inception. During the third quarter, total dividends of $45 million were declared. The dividend represented 37% of funds flow from operations for the quarter; however participation in our Dividend Reinvestment Plan is at 62%, resulting in cash dividends of approximately $17 million, or 14% of quarterly funds flow from operations. As at September 30, 2012, PetroBakken had $0.4 billion of debt drawn on our $1.4 billion credit facility. We currently have $1.0 billion of available credit and a debt capital structure with diversified sources of credit and a layered maturity profile that compliments the long term nature of our light oil-focused assets. We remained active with our Normal Course Issuer Bid, purchasing approximately 493,000 shares in the third quarter at a total cost of $6.4 million ($13.09/share). Year-to-date, we have purchased approximately 3.8 million shares at a total cost of $51.7 million ($13.51/share)." In my view, PBKEF/PBN.to is big enough and doing enough -- acquiring properties, aggressively exploring, buying back shares, having a very attractive dividend yield -- to where I want to continue to add shares if/as stock continues to fall on no adverse news. Jmo opinion of course, and my intentions.

To: Spekulatius who wrote (13239)	12/5/2012 12:07:41 PM
From: zen_lunatic420	Read Replies (1) \| Respond to of 34328

PBN.to/PBKEF: I think you are overstating their market cap, I see ~$2B right now which is about half of what you're using to calculate $reserves/share, or are you using a fully diluted number assuming full conversion of debt? Also, their proven reserves are conservative and can/will increase by multiples once they decide which EOR methods will be applied and what recoveries will be.....but looking at potential 5x increase in proven reserves when that phase of the field development begins.