GREY:LSTMF - Post by User
Post by
JohnDDon Oct 09, 2013 10:21pm
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Post# 21805302
My Take on the Operational update
My Take on the Operational updateOverall I was very pleased with the results.I was happy to see production over 45k for the quarter so that puts the company on target to hit 47k for the year based on my calculations. I will admit that I was worried that they may not deliver this Q and put the annual guidance at risk. But thankfully that did not happen. Thanks to all the employees for a solid effort.
Some notable highlights from the release:
1) "We also resumed our southeast Saskatchewan optimization program in the third quarter, which was first implemented in 2012 and is materially mitigating our Bakken base well declines." I like the fact that it is MATERIALLY MITIGATING decline rates. That is excellent news.
2) There is 1000 boed shut in due to facility restrictions. It's a bad news good news story. The good news is there is a 1%+ increase in annual production for next year that is already in the bag.
3) "Over the long-term, we continue to target a sustainability ratio of 100% and a debt to cash flow ratio of 2.0 or less." Although this has been discussed before in Quarterly CC's, and likley in the MD&A, it is nice to see more reinforcement that this is priority for them.
If they stay focused, and they can CONSISTENTLY execute, we will do just fine. I am not looking for any home run results, just deliver on production targets and budget.
We just need to oil price to continue to cooperate.
John