CA - Canacol Energy: Upbeat Expectations For 2024 With A 17% Dividend Yield
2024-02-06 10:30:00 ET
Summary
- Canacol Energy's 2024 guidance shows a 14% increase in EBITDA compared to 2023, with a dividend yield of approximately 17%.
- The company plans to spend $48-56M on exploration, despite a decrease in production volumes.
- The higher realized natural gas price in Colombia is expected to contribute to impressive earnings results, but there may be limited free cash flow.
Introduction
Canacol Energy ( CNE:CA ) ( OTCQX:CNNEF ) is a Canadian company focusing on its natural gas production in Colombia, while it also recently decided to enter Bolivia as a new market. The company recently axed its anticipated 50% production increase and cancelled a new pipeline, and this news was not well received by the market. However, the lower production rate also means a lower sustaining capex is needed to keep the production at the current level, while the exploration budgets can be cut as well. The company recently published its guidance for 2024 and I was pleasantly surprised to see the mid-point of that guidance indicates the EBITDA will increase by 14% compared to 2023. Meanwhile, Canacol will continue to pay its quarterly dividend of C$0.26 per share which means the stock currently offers a dividend yield of approximately 17%....
Canacol Energy: Upbeat Expectations For 2024 With A 17% Dividend Yield