This is why you buy now.... Management misguided steps is why this company is not in a postion to take advantage of the market downturn , and has not put the company in a position to be oportunistic, we they basically have the company sitting on their hands.
Last year they traded at 4.60 adjusted funds flow per share and the the share are trading at 7 dollars, that is 1.5 times funds flow and could generate 2-6 hundred million in free cash flow in 2019. You will not get it cheaper.
The problem is this, they spent 350-400 million on a gas plant they don't need, and if they bought back 350 million worth of stock they could by back 15 percent of their float. That would make based on 2018 number adjust cash flow of 5.40 a share, wow, and you could generate 2 dollars FCF per share.
The price should never be this low, and extra gas plant is just a drag on the botton line and has no value as far as i can see right now.
Why should an investor be here, they could potentially produce 220,000 boe a day, they could have cash flow in a quater of 550 million dollars, will have a maintianing capex spend of 200,000 million dollars.
Their budget is 1250 million with roughly a 400 million spend in the first quater that means 850 thoughout the rest of the year. The second quater prices will be better than the first quater, increased cash flow, and they hedged 5000 boe of liquids at 65 us dollars, that will help as well.
My guess is this VII generation has 850 million in Capital spend from now to the end of the year and will likely cash flow .9-1.2 billion. They should generate significant cash flow and returns, the stock is way too cheap.
IMHO