RE:RE:DeclineMore reasons:
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Generated adjusted funds flow1 of $13.9 million ($0.55 per consolidated basic share) in the three months ended September 30, 2021 compared to $1.0 million in Q3 2020 ($0.09 per consolidated basic share);
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Achieved an operating netback1 for the three and nine months ended September 30, 2021 of $28.83 per boe and $29.55 per boe;
Most operators in the area are achieving >$50/bbl operating netbacks on their oil at current prices. They are half that.
At a $50/bbl netback they should be generating $30 million/quarter in cash flow. This would be huge in terms of being able to pay down debt and reduce their abandonment liabilities. They generated $14million/quarter.
Not to be critical, but this is a management team that has limited experience operating something this big in this area with as many issues as the properties have. They need to beef it up with some seasoned vets to help improve cash flow, prioritize their capital/drilling and understand where their best opportunities are. If they do that they may be able to turn this ship around.
It's a big aquisition, likely overwhelming, a learning process and it's early in the game.
Shareholders see the above numbers and they sell.
I will be adding to this in the dips as I believe the above will shake out.