Elsewhere in Alberta, Jim Evaskevich's Cardium-focused Yangarra Resources Inc. (YGR) edged up three cents to $3.01 on 790,800 shares, after it too released its third quarter financials. The mixed numbers drew a lukewarm reaction. Production in the third quarter averaged 11,750 barrels a day, a noticeable increase from 10,600 barrels a day in the second quarter, but cash flow and net income both fell on weaker prices and higher spending. Yangarra was able to reduce its net debt by only $8-million during the third quarter, compared with $23-million in the second quarter. It also nudged down its full-year production target to a range of 11,000 to 11,500 barrels a day (from 12,000), while increasing its budget by $5-million (to $110-million)
As if to offset any disappointment in the numbers, Yangarra's management chose this moment to hop aboard a popular bandwagon, declaring its interest in launching a "return-of-capital strategy." It said this could potentially take the form of share buybacks or special dividends. Tempted investors should take note: Yangarra does not intend to start the program until its bank debt gets below $100-million, and management did not estimate when that might happen. As of Sept. 30, the company's bank debt was $153-million, down from $199-million a year earlier.