Post by
dowd on Mar 04, 2015 7:50pm
Very good results
The loss for the year doesn't mean much as every oil company will report similar non cash loss on reserves pricing. The annual results are deceptive because they do not include a full years contribution from the big aquisitions last year. A more accurate way to view this company is to annualize fourth quarter results which were excellent at .68 cash from operations and factoring in lower product prices going forward.
they even managed to hedge more than I thought.
With excess cash flow and some minor property dispositions these guys will be fine And make it to the next up cycle. The stock was pricing in debt problems with the bank, but this report shows that any adjustment will be minor if needed. Seems like they have already done a deal with the banks.
I think the stock and debentures trade up big time tomorrow.
The worst is over for this company. Looks like a good stock to hold for multibagger returns in a couple of years. GLTA who have held on!
Comment by
Shlinker_ on Mar 04, 2015 8:04pm
i certainly hope you are right dowd, in that the market likes this update. We now have over 170,000Mboe in 2P reserves? thats huge. Despite the debt, we trade at a huge discount. I also like the hedging for 2015. The gas is priced high, and the oil/liquids is decent imho. Costs are down. We should see a rise in SP?
Comment by
JonCom on Mar 04, 2015 8:07pm
Agreed. They are using common sense and grasping the reality of the price environment. This was probably the best thing they could have done. They know they need to tighten up and balance the books for the long haul. Im happy with those at the helm. Im going to be laughing a few years from now.
Comment by
mdaffin on Mar 04, 2015 8:45pm
Losing 1/4 of a billion is never good, especially when the new oil price is only partially reflected in that quarter. Not invested in this, but have looked at a few times. With the debt they carry, future asset write down, and current oil environment, they are going to be challenged.