RE:RE:flat productionThe low WTI price combined with the high WCS WTI differential killed SGY in Q1. The problem now is the differential has improved but WTI is worse. Cash flow for Q2 might not be much better compared to Q1. Their master plan to pay down debt and raise the dividend later this year is not going to happen at the current prices. Maybe early 2024 if things improve by then. If Sparky and SE Saskatchewan are going to be their key areas, SGY should consider selling some of their non core assets to speed up debt repayment.
Increasing production to 25000 boe/d looks good. When you look at the increase in debt and the increase in the share count to accomplish that, not so good.
SGY might be in for a beat down when the TSX opens tomorrow. Hopefully Paul can put a positive spin on the numbers when he has his fireside chat with Adelaide Capital tomorrow.