chengwaidefeng
Thesis
Right now the economy could be teetering on a precipice, depending on your point of view. We may narrowly escape a recession and find the soft landing as the FOMC suggests, or we may dip into the recessionary end of the
Coterra: Why The Variable Dividend Cut Isn't Necessarily A Bad Thing
Summary
- Low breakeven costs and a large reserve in the Permian basin sets Coterra up for success even in a recession.
- The variable dividend was cut, but in return, it allows the company to be more nimble in the face of tough market conditions.
- The base dividend remains very sustainable, with dividend increases on the horizon.
Almost 20 years in the markets. Investor, algorithmic trader, programmer, money manager, and stock analyst. I proudly taught myself everything, and very proudly have zero big fund Wall Street bonafides - I focus almost entirely on the DIY investor who is just like me. I also manage and advise private equity funds who wanted nothing to do with the big boys on Wall Street. My book is launching in August! Sign up for my FREE weekly newsletter with market and economic analysis, as well as a stock pick at https://www.investingisntcomplicated.com/free-newsletter
Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, but may initiate a beneficial Long position through a purchase of the stock, or the purchase of call options or similar derivatives in CTRA over the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
I will likely purchase CTRA in personal and managed accounts based on my analysis.
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