Oversold (globe and mail)The Calgary-based company announced production of 103,000 barrels of oil equivalent per day, meeting the consensus estimate on the Street (103,800 boe/d). Cash flow of $1.42 fell short of the consensus projection ($1.52).
AltaCorp analyst Patrick O’Rourke said: “Overall, we view the event as neutral, given modest underperformance of street expectations for production and cash flow (most of which was explainable due to unplanned French refinery downtime) resulted in no change to FY19 guidance. Entry into Ukraine fits well with existing CEE assets, and requires minimal capital commitment/risk. The NCIB announcement will satisfy some investors that continue to advocate for the strategy, but in our view debt repayment which allows the company financial flexibility to pursue accretive activities in the future remains the preferred deployment for FCF.”