Self Serving ManagementIt looks like rodster55 was right about management. The quarterly results were mediocre considering the increase in oil prices, although vastly better than last year. The $12 M debt reduction was disappointing, and the $8M in hedging losses expected; but still disappointing. Those on the inside knew the results weeks ago and it goes along way to explaining the 25% drop in the share price two weeks prior to releasing the financials. When we retail investors get the news, it is no longer news.
We are a long way from a dividend. The banks don't want to be in the oil business and they are in charge. The dividend isn't managements decision, its the banks. I expect at least another year of debt reduction to under $100M before a dividend could even be considered, and that is probably good for the company in the long run.
If oil prices stay in the 70s third quarter results should be better with the reduction in hedges, FCF probably around $25-27M hopefully this helps the share price.