RE:RE:Results are outNet Income is not a good indicator for E&P companies.
They have so many assets on the books (equipment, land, reserves) that depriciation is significant. Depreciation is a non cash expense so it is not an appropriate proxy to use net income(loss) to see how well the Company is performing since the net income bottom line is blurred by the depreciation expenses.
Most people value E&P companies using funds from operations (or adjusted FFO to adjust for non recurring expenses and normalize what the "true" picture would be).
Using this metric CJ earned 0.23 AFFO per share (vs. 0.19 in Q1-2017). Production was up (especially nice that light oil production was up 9%), debt continued to get hacked away (with no need to get rid of all royalties - just one small one in the months to come to get debt under 200M). CAPEX was much lower than budgeted which is always good as well.
Overall decent quarter and pretty much on par with what I was expecting.