This company's financial foundation is soundly based! Once this present share price consolidation is finished, Prospera stock will move to much higher levels.
The Q3 report says it all for anyone who may have missed the obvious.
https://stockhouse.com/news/press-releases/2022/11/18/prospera-energy-inc-announces-record-profitability-in-q3-2022-as-restructuring "...Operating Costs per boe have
declined from $52.56/boe to $40.07/boe as restructuring momentum accelerates..."
This will continue, even if oil prices remain low, for some period of time.
Costs to production are declining as more horizontal wells come on stream. "...PEI accelerated the restructuring momentum by executing a significant well recompletion and reactivation work over program during Q3..."
"...As ESG initiatives continue, PEI has abandoned 16 wells amounting to $599,812 in decommissioning liability (ARO) reduction in Q3 2022; 41 wells amounting to $986,209 in ARO reduction for YTD 2022..."
The company needs fewer of the old vertical wells to mount their new horizontal drilling efforts. Once these unncecessary well heads have been properly decommissioned, that liability expense will be eliminated from Prospera's balance sheet.
Quarterly costs will then decline, even more!
Oil prices fluctuate. Presently a little down in price, some shareholders appear, somewhat uncertain.
Recessionary sentiment moves in different directions almost like a tidal wave. It ebbs and flows.
One moment, there is shortage of oil. The next an oversupply!
One day, China is opening up. The next day, Covid is returning. But one day, even this poorly run fickle regime, will have to fully open up again, or it will be left far behind. Competition in this modern world is fiercely fought!
Prospera's operating efficiency will continue to rise and so will its nearer term profitability.
Once recessionary concerns move soundly to the back burner, higher oil and gas prices will then become, more firmly fixed. When interest rates begin to rise at a slower pace, more certain, central bankers, then send this signal to the market. They will soon be done!
Markets look ahead. Inflation may not be gone. As in the past, future money always buys less.
But cental bankers are usually satisfied, if the trend towards monetary depreciation is better under control. Rates rise, stop and then go lower. It's not magic.
This much can be predicted.
Take your time making your trading decision.
Reluctantly, the longs always have to wait.
That's what investors do.
All the best! Java