RE:RE:RE:These disagreementmrpanick wrote: Pumping is typically when you hype hot monentum stocks at the top of the cycle. We're at the bottom of the cycle and PTA is trading at around 1X cash flow even based on $60 Brent.
I think perhaps Mr Panick missed the zero there, should be about 10X funds flow, and even that may be overly optimistic.
Last reported Q they had about 1 million $ cash flow ( funds flow) and that was with a realized oil price of over 94$ a bblUS.
Third quarter financial summary
For the three months ended Sept. 30, 2014, the company reported $43.2-million in revenue, net of royalties, from the sale of 567,000 barrels of oil equivalent. The realized sales price was $94.59 per barrel of oil equivalent, generating an operating netback of approximately $46 per barrel.
For the third quarter of 2014, the company's net loss was $7.9-million (one cent per share diluted), a result of weaker production levels through the quarter and declining oil prices, offset by foreign exchange gains incurred due to the weakening of the Canadian dollar. The company's capital expenditures for the third quarter were $9.6-million, all invested in Colombia. As at Sept. 30, 2014, the company held 23 million barrels of oil in inventory.
Funds flow of $1-million for the quarter ended Sept. 30, 2014, were down from $18.2-million for the previous quarter.
Operations update
Company production
Company working interest (before royalties) production for the third quarter averaged 6,009 barrels of oil equivalent per day, exiting the quarter at 6,457 barrels of oil equivalent per day. October production averaged 6,359 barrels of oil equivalent per day, with 4,064 barrels of oil equivalent per day coming from the Llanos basin and 2,295 barrels of oil per day from the Putumayo basin. This compares with the September average production of 5,183 barrels of oil equivalent per day -- 4,293 barrels of oil equivalent per day from the Llanos basin and 1,575 barrels of oil per day from the Putumayo basin.
As you can see the guidance for 2015 at 5500 bbls a day is a suggested drop in production from OCT.
I believe the current share price is a reflection of shareholders NOT KNOWING exactly how profitable or not profitable PTA is at these prices. We shall see shortly. I am still sticking my neck out saying they will report a .05 a share loss in the 4th Q and that is with oil prices and production that averaged much more than todays.