Production growth, new discoveries & strong balance sheet Despite the reduced drilling activity due to the low oil price, the company managed to increase its production significantly. This shows how productive its acreage is. It also helped that the company made several new discoveries, proved new acreage and expanded its drilling locations.
On top of that, Hawk did NOT incur any impairment charge like MOST other energy companies did in Q4 2014 due to the slump in the oil price.
I quote some key excerpts:
-Reported record quarterly production of 751 boe/d in the fourth quarter of 2014.
- First quarter 2015 production expected to average approximately 775 boe/d, based on field estimates. The Corporation has also shut in approximately 75 barrels of oil per day of production from higher operating cost wells. Hawk expects to reactivate these wells once the price of oil has improved.
-Hawk's current production is estimated at approximately 720 boe/d.
-The theme of the 2014 drilling program was to discover new accumulations of oil in areas where the Corporation had a large existing land base so that discovery wells could be followed up with multiple development drilling locations. In this regard Hawk was very successful. New discoveries were made in the Forest Bank, Yonker, Rush Lake and Eureka areas, all of which will provide for additional drilling.
-Hawk plans to disclose its second half 2015 budget when it announces it first quarter financial results on or about May 27, 2015. Once commodity prices improve and return to more economic levels, the Corporation is well positioned to grow with an excellent inventory of development opportunities within its existing core areas.
-Net Debt to FFO and Net Debt to EBITDA ratios remain very low and well below 2 times.