Post by
Valueinvestor9 on Aug 20, 2015 9:15am
Reduced Capital Budget ($10,000,000)
Reducing spending in this environment is smart, but that means no growth in production. The reduction actually may lead to a decline in production. Will they be able to maintain the 4,000 boepd?
Land Expiries. WIth less monies to spend they are definitely not going to be able to drill up the excess lands. Say good by to that segment of their promotion.
I fully expect the stock trades down on these results.
The market was expecting they were goig to move towards 5,000 boepd.
Unimpressive quarter compounded by the fact they now have a substantially lower commodity deck to work with. Have not seen one analyst jump and say great job. Weak quarter.