GREY:EXTSF - Post by User
Post by
Tokatoon Aug 15, 2007 8:02pm
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Post# 13252231
I think it is a screaming BUY now
I think it is a screaming BUY nowEXA's Q2 results were "ho-hum", but that's OK. they showed good stabilized production with some behind pipe. As importantly, they have been successful in drilling some high-impact wells where they will be produced at well below capable rates to have a steadier decline curve. EXA's production in Q3 should be 3,000 BOEs/d and Q4 should ramp-up to 3,500 BOEs/d.
Its cash flow multiple is very cheap even on Q2 results. But with production likely to increase by 30% by year-end the numbers will be much better.
Stock made a downward move because gas prices plunged again to $6/mmbtu. but it is starting to crawl up again. I see Q34 gas price of $8/mmbtu. I see EXA's Q4 CFPS at $0.20.
stock should at least get back to $2.50 by year-end