RE: Whats up?BeerBelly
"Tomorrow's results(should they come out tomorrow, depends on whether you believe the posters on this board or not) should be much higher than Q1 given higher flow rates on Yemen properties and a strong price through Q2 thanks to the Iraq war."
I'm not expecting a great quarter. In fact, if the results are similar to last quarter I will be very happy. Although they have increased production by maybe 10%, I think the reduction in revenue due to the cost recovery pool has been accomplished at Tasour will offset the increased production and oil prices. Also, I think oil prices will be similar to what they averaged in Q1.
What is the wildcard is the NG wells in Canada. If they are big, which I don't think they are, then the quarter will be pretty good, but I don't think this will happen. In fact, I doubt they were tied in before the end of the quarter, so they likely will not be included in the Q2 earnings. If the wells were a big hit, I think we would have heard about it. What is nice is the hedged price they have until November. I hope they decide not to hedge too much production prior to the winter since I think gas prices will go up again, especially if it gets cold.
As for the recent runup, who knows what casued that. Maybe investors are realizing how cheap this company is. However, the recent pullback was expected and may drop even more after tomorrow earnings release, especially if it is similar to Q1. I expect the share price to hover around $1 for a while until they come out with reserve estimates for S1 and if development is a go, which should then boost share price. Of course, all JMHO.
Others HO?
By the way, I very much like the share price where it is at the moment. Getting pretty sick of the First Energy group.
GLTA
Cheers,
Oxyurid