Q: Further to Gordon's question 01 Sep any projections to when CVE and CNQ will each reach their debt limits and start returning the profits to shareholders (divs or buybacks) ? Thank you.
5i Research Answer:
Much will of course depend on commodity prices and what the company does. But at CVE there was a ~$4B debt reduction in the past 18 months, so if that rate is maintained, the goal could be achieved in about 2 years, or less, if spending was reduced. For CNQ, it had lowered debt by $3B since the end of 2021, so likely should hit its goal in about three years. Note, both companies are already paying dividends.