Results are out and I am a happy shareholder!Check them out:
https://www.delphienergy.ca/
For those short on time: They are exactly as expected.
This quarter is weaker than the trend (still plenty of growth) and that is because of a curtailment of 4MMbls/d during August with a third party processing and transportation issue.
The last well of the quarter was also put online just at the beginning of Q4...
Ultimately, here is what matters:
1. On track to meet exit rate for 2014
2. Wells are outperforming. Fracking technology is evolving and continuously improving.
3. Capex planning for 2015 is set: Living with their means (Capex = fund flow from operation)
4. Net debt to fund flow is currently at 2.9 (due to the lower numbers for the quarter), for Q4, it will be at 2.3 and for Q4 2015, it is expected at 1.5
5. Firm invested in a lot of the infrastructure hence high netbacks.
6. Bought land offsetting current land (-> More growth)
7. Hedged and stress test shows a hit of $8M to fund flows for next year if oil remains at $80, obviously no one wishes this scenario to deliver but given that fund flows are expected between $77-$82M, it is something they can live with.
All in all, I believe this to be the turning point. I expect to add more to my position in the coming days. Load up on any weakness in commodity prices. To think this stock came all the way back down is quite incredible. I expect a rally for the year end as long as commodity prices behave.
GLTA, do your own D&D.