A shout out to all those who are contributing to this MB; it's always nice to get different perspectives, relevant news articles, and convictional opinions - please keep it up!
I'll add my $0.02:
I don't understand why the company is so quiet. There have been no official PRs since the NCIB renewal which was in early December 2020; furthermore, their website still has the November 2020 presentation showing. You'd think with oil/LNG on a tear, the company would issue some sort of "hope inspiring PR" for us lowly investors. Alas, perhaps they have nothing promising to say?
Consequently, I'll take a snippet from their Q3 Report and endeavour to inspire interested parties (well, me at least :)...
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"In Canada, we have continued working with our core high value customers in a cost constrained operating environment where we have maintained the utilization levels gained in Q2, amid substantive competition. We have advanced our investigation of technology to deliver on our customers needs for reliable, low cost well work solutions that reduce environmental impact while creating job opportunities for oilfield workers. We have established the Seh’ Chene Partnership with the Saa Dene Group, lead by internationally respected business leader and philanthropist, Mr. Jim Boucher, who was the Fort McKay First Nation’s Chief for over 30 years. It is Seh’ Chene’s mission to execute dependable high-quality energy services, focused on environmental stewardship, while creating opportunity for local Indigenous communities and individuals.
High Arctic remains confident of increasing work both through the new Seh’ Chene Partnership and in our core business, driven in the near term by customer restoration of shut-in production, the well abandonment stimulus programs and our customers growing realization of the opportunity to deliver on Environmental, Social and Governance (“ESG”) obligations while reducing end of life well abandonment cost liabilities."
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It's likely that oil will continue its bullish trend (I'm expecting $75 by EOY) as there are many catalysts which are too hard to ignore. I too agree w/others that PNG will resume before EOY 2021 and that the company's minor setback is temporary. How temporary is anyone's guess.
Insofar as Q4, although PNG operatons are still uncertain for the present, the Canadian counterpart might help to temper revenue decline for Q4 - my guesstimate is $21.5MM-$23.5MM in revs for Q4 w/$2MM-$2.5MM in cash flow generation.
If results are substantively worse, well then it's just another opportunity to accumulate shares. Conversely, if results surprise positively, then it's just another opportunity to accumulate shares! lol
It's unfortunate that they haven't, as yet, bought back any shares at these discounted prices in 2021, but I also understand their need to be prudent with spending. It's just a shame that they'll be more willing to buy back stock when it's trading at $4 rather than now. Go figure. Oh well, they'll be buying from me!
Holding steadfastly and accumulating the dips!
Cheers,
JJ