big big increase in capex....At $313 million, their capex for next year is going to be $66 million more than 2013. Their spending on primary production and reserves drilling is increasing to $216 million from ~$160 million in 2013. So surely to goodness as TD states, the guidance should be be easily beaten with $56 million more spending on primary production and reserves drilling. I do not think we will see Bankers increasing guidance as it is better to have lower guidance and be at the top end or beat it than telegraph a big guidance number and struggle to meet it quarter after quarter. $56 million is a lot of drilling (160 wells!!!! generating ~16000 bbls per day of initial production).....six rigs going flat out!
The market is also liking the larger capex number as the share price hit $4.20 just now.