A little bit surprisedI am a little bit surprised on how the stock is reacting to the earnings. I would have expected a small gain, but rather the stock went down 3% very quickly, to regain half of the loss.
It is still a very illiquid stock, so any meaningful buyer or seller could easily move the stock by 2-3% quickly.
Why are people unhappy?
1- AFF exceeded expectations
2- Production was below expectations, and will stay lower. It makes sense to cut nat gas production when prices are this low.
3- Guidance? Guidance has not changed.
4- Debt levels? Anybody who is surprised with the level of debt, did not do their homework. Actually, debt level is lower than expected based on AFF and capex.
5- No annoucement on Groundbirch? Obviously, they will not announce anything with nat gas prices at these levels.
6- No land sale. It is not like they sell some land every month or so. It is quite rare.
7- Not putting themselves for sale? Too early.
Again, not a bit drop, but I would have expected a small increase.