News out. stock is up 5%. All in all, a snoozer of a press release, with some flags once you dissect it:
1.Still struggling with water handling, water disposal issues which is driving up op cost. Boggles the mind how this is still an issue when it is so routIne at every other company.
2.total D&C cost are up year over year 17% from $9.6mm to $11.2mm. Funny that they went with the quote that costs are "down 10% compared to third quarter".
3.realized condensate price was $68.10/bbl, as I predicted and NOT $80/bbl like somebody else predicted
4. Corporate net backs are low $20s. Hampered by gas being such a huge component of the production profile. Liquids ratio was down 2% year over year indicates that the wells are in fact getting gassier. Look for this to continue to be an issue as they get further from sweet spots.
5. Their NGLs (propane) and gas are effectively worthless. Everything is driven by condensate. Hence the risk being exposed to the tarsands as your only customer for said condensate.
6. The revolving door of exec departures continues. And the founder Pat Carlson has been quietly bounced from the board of directors. How telling that the founder of the company, the guy responsible for the vision and inception, and all that work has been ignominiously reduced to a single line at the end of a press release.
6b. No mention of layoffs. Trouble is brewing with the staff though....they are asking the tough questions.
7. debt is reduced with an interest savings to boot. About the only good thing on this press release.