RE:RE:RE:Q3 EarningsNo, not that earnings really matter but we did get an impairment reversal of 26.5M for Peace River..think would have done a reserve report to do the deal so not suprised they did a test here.
and then negative 4.2 impairment charge for legacy asset decommissioning (good to do that...conservative approach).
So 26.5 - 4.2 = 22.3 impairment reversal that made our deprectiation lower.
So without this we still have net earnings...without considering tax implications we would have had net earnings of 24.3M if impairment reversal is taken out.
Still really higher per share and I am not an earnings guy for oil and gas.
John, this tip isnt for you but for newbies to oil and gas:
Earnings matter more in oil and gas if you think the assets are stated accurately on the balancesheet. I don't think some companies do. OBE valuation on property and equipment look reasonable to me.
For example back when Bealltrix was around...I always thought and had plenty of debates that thier property plant and equipment is too higher.
I just knew this from "patch knowlede on values".
Free country so I am allowed to have an opinion and YGR stating 606M in property,plant and equipment...hmmm....really....
Let me pose this question...if YGR stopped drilling today...could they CF 606 m back even at current commodity prices...PEOPLE MODEL IT!!!
Scary the energy stock market right now...low shares trading in some energy companies and prices are overvalued. Cardinal at 5.50...I know that company inside out. No...hype.
Bonterra. Yangarra at 1.73 still.....
Really surprising isnt more lawsuits around this on property plant and equipment...Bellatrix shareholders should have sued. Something to think about.
JohnJBond wrote:
No they are not from impairment reversals.
The impairment reversals were in Q2, which is why they had earnings of $322 million in Q2.
Q3 earnings are operating results.