How can LRE pay almost twice the EPS in dividends?Disclosure: I bought 200 shares this morning as the price was falling. (My hands are scarred from catching falling knives.)
The 1st Qtr 10-Q Cash Flow Stmt shows:Net income.......3,849Depr & Depl......7,011The next line is:Impairment of oil and NG properties....3,093Websters has "impair" as "to diminish in quality". This was a non-cash adjustment to net income. Shall we think of this as good for cash available of dividends as well as depreciation and depletion?
Here you go...in the case of E&Ps, you have depletion and intangible drilling rights among the charges against earnings which do not reduce cash flow.http://finance.yahoo.com/news/mlps-pay-higher-dividends-earnings-025810559.html
Thanks. Very helpful.
Very helpful. Brand new here; so if we use DCF vs EPS, how does LRE look? Have you any good links to fundamental data like DCF?