RE:Good reportYa I must agree. I was pretty concerned that the flooding would have caused some serious issues. It appears as if they have been able to avoid anything too terrible. I like the operational momentum that they have going into the third quarter. 13 midale wells, 2 bakken wells and a torquay well is some pretty serious production adds. Since they are already at 26,000 BOE/D I think it is fairly reasonable that they can beat their exit guidance.
Some things to look forward to are:
Integration of High Rock and Corinthian.
Sale of Elmsworth
Further deleveraging transactions
Results from first operated Torquay well
Continuing decreased in the debt/ cashflow ratio
Results from waterfloods in the Midale and Bakken
I'm a bit curious about what the end plan is for management. They have a sidecar company in LGX that appears poised for some growth entering into 2015, so they have a ready made vehicle if they are ready to sell. With this in mind I wonder if they plan on getting Legacy to 30,000 BOE/D and selling, or once debt is under control ratcheting down growth and paying a dividend, or pulling off a big acquistion and continuing growth and aiming to become a large player in a few years. I'm not really sure what option I would prefer.
Anyways the trading in this is always a bit wonky so we will probably be down tomorrow anyways. Haha. Hopefully I'm wrong.