The market is expecting too much now.....3.7% sequential growth amounts to an anualized growth rate of 15.6% which evidently is not as high as the market would like to bid up the stock higher. This is back to where the guidance topped out at so the market is saying.....gee I thought this company was going to continue to growth at the 26% annual rate they reached last quarter because of a few quarters of out performance particularly last quarter where the sequential growth rate was 6%. Also nearly $90 realized prices seem to be of no effect either. Also production is anticipated to be impacted by the conversion of some producing wells over to the flood pilots. Honestly!. On the interview French indicated that they anticiapte creating shareholder value through successful water and polymer floods as well as "other" opportunities....I wonder what he means by other?
Any way the stock is trading at just over 50% of its risked 2P NAV which for a long life reserve E&P like Bankers is still very low....way way below the peer average????
I think based on 110 crude, the company should generate some considerable free cash flow depending on how much capex was consumed in the quarter.
We need something dramatic to get the share price up to where it should be and it is up to French to convince the market that the stock should be trading at 80 to 90% of 2PNAV as opposed to just over 50%.