I have been waiting for this stock to crackThis company was trading at perineum to its peers. It is relatively better positioned. It took a while for te share price to crack. The stock had a 7.8 m short position. When it dropped to $5.50 some short sellers decided to cover 2.8 million shares & stock popped about a $1.00 to $6.50.
With oil sell off it has been drifting lower but still did much better than other oil stocks. Today it is the first time the market is treating this stock look others. This stock has one weakness that its debt is not that low. Investors were ignoring that fact. But if oil remains weak for a long time then it will become more focus when banks start reducing the line of credit.
Because of their hedges they are good for next few quarters. After that they are prone to high debt like others. The other good thing about this company is that it has very low decline rates of 22 % & huge unused line of credit so far. Even with reduction in line of credit they will be fine.