yup best thing is end the dividend, plow back into expansion program underway, keeping debt down , sit back stock hits 2 as income investors leave, and then when pipelines, etc in place 3 to 4 years watch the divy come back and stock soars..
They won't eliminate the divy but I expect a possible reduction until the new programs come into play. Payout may be too high in the near term but then again they have plenty of cash to cover. Anything that gives investors a neutral to positive sentiment will be huge right now. Anything super positive drives the stock back over 5 and of course the other way IMHO is limited. I think the drop below 4 was the market pricing in a divy cut. If that doesn't happen then folks will jump in at these levels to get the yield and limited downside.
Nice recap of PGH. My firm runs an energy fund, and PGH is the only loser over the past year. IMHO, the reasons for PGH's decline is as follows:
1) Entire energy sector is out of favor - most equities are near 52 week lows( CHK, ECA, APA, DVN, APC, PGH, ERF, PWE, etc..)
2) Weakening Canadian economy
3) Weak NG pricing
4) High possible future Debt ratio's
5) Possibility of future dividend cut
6) Lack of pipeline infrastructure
My personal view is I would like to see the dividend cut and have PGH use that capital to repurchase shares. Buying your own shares at large discounts to NAV is highly accretive to shareholder value(look at ACAS). I am looking forward to Fridays earnings announcement and conference call.