RE:RE:RE:Results
Just looked at the numbers briefly, so I havn't gone over it with a fine tooth comb yet. Mixed results is my assesment. I think it comes down to how you want to evaluate and value the company. If you value the company as strictly a multiple of cash flow you like the results. If you value the company on the basis of debt you likely don't like the company as much today. Has anyone got any debt to cash flow comparisons over the last year or so? Personally,I am a bit disapointed with the results, I think to much debt was spent this qtr. One could argue that the the flooding hic up hindered +- 500 boe a day production. One could even say the flooding affected cap ex over the qtr. However, I think that is a stretch. The company is giving you 15% annual growth but at what cost. The company says it wants to pay down debt and than they add to it, so which is it? I would like to see another qtr to see what impact the lower oil prices have and to see what impact the "normalised" weather has on cap ex and production. If I were a betting man I would bet the market will place more emphasis on the debt growth rather than the full year production beat. One thing you can't argue with is that this company is becoming a cash flowing machine. If they could ever turn the corner, maintain growth and get on the otherside of the debt, pay it down, the company would have her beat. Well place your bets, plenty here if you are a bull or a bear, cheers Matthew