RE:This forum is dead, like the stock upward trend..Company is being very conservative - they are forecasting WTI at $38 for 2021 (and zero bank debt). This seems to be their bottomline baseline - that they don't want to go into debt again - at least not in 2021 - so their capex is predicated on worse case WTI. Plus they have a significant number of drilled completed and drilled uncompleted wells (for their current production level) which can be viewed as negative capex - they could theoretically spend no capex and still bring 7? wells online. I don't know if they're hoping for the best but they're certainly planning for the worst.
However, if commodity prices rise, they'll bring those completed wells online (what they said). And if they stay high (and they can hedge at those higher prices?), they will probably add to capex (my color). But again with the all important constraint - finish 2021 with no debt.
Meanwhile, they continue to do what they do best with their lands (delineate, trade, ???), the ultimate goal of course being to fetch a premium price for their assets. And as we've seen, going deep into debt actually takes them further away from that goal doesn't it (besides leaving a sour taste in shareholders' mouth)? So there we are, fellow shareholders.
Cheadle12 wrote: I bought some of this some weeks back in the high $1.40's/ low $1.50's.. expected it to go up to $2+ given there's no debt. I still think it will, but they're kinda flat and now on a trend down.
Swap for AAV or stay in here? Only non-troll replies welcome.