Q2 ReflectionIn my view, a very important element of the Q2 results is that prior to the Q2 results, most investors only had the Q1/22 results to consider.
The Q1/22 were good, but they came with two "wait and see" components.
The first was that in Q1/22 OBE spent more on capex and decommissioning than they brought in. That led some potential investors to believe OBE was engaged in a borrow to drill strategy - instead of a reduce debt strategy that others are following.
The second was that in Q1/22 the company recorded about a $23 million performance bonus for its execs.
That may of been enough to keep some potential investors from investing, and may of encouraged others to take profits.
I suspect those two "wait and see" components distracted some potential investors from what was really going on at OBE.
The Q2/22 won't be released until July 28/22, but the preliminary release of July 14/22 gives a much cleaner view of what OBE is actually doing.
From the preliminary release we can see that Q2/22 will spell out that OBE is growing production, and cash flow quickly, while at the same time quickly reducing debt. There will be zero performance bonus for the execs.
Financial analysts will know nothing has changed. But amature investors may get a completely different picture of the company.
OBE is a thinly traded and closely held company. A small change in investor sentiment could have a significant change on the share price.