Adjusted Funds Flow per boe I understand netback is important when considering operational efficiency.
SGY’s Q2 MD&A last page indicates netback of $11.25 per barrel. This seems respectable compared to peers in the same period.
Adjusted Funds Flow takes netback and subtracts interest and G&A. (correct me if I’m wrong).
The resulting Adjusted Funds Flow per barrel of $5.69 seems not bad considering the debt load at June 30. But it’s not as easy comparing this Non-GAAP number to peers.
As more attractive hedges drop off, I expect adjusted funds flow to drop of course, but this is the number I’ll be watching for in Q3 release. My hunch is they paid down a little debt and are walking a fine line in this environment. Paul is no fool. Renewing bank loans will be the wildcard.
GLTA
- Dan