TOU had another strong quarter even with commodity price shifts, and is now trading at 10x times' Forward P/E. In the 3Q, TOU’s revenue declined -9% to $1.59B, compared to last year of $1.68B and cash flow per share was $2.55, a drop of 17% compared to last year of $3.06. Production is healthy, up mid-single digit, but revenue overall was a headwind of tough comparison from high commodities prices last year. The balance sheet very strong, with debt at nearly nil. The company has forecasted that FCF next year is expected to be around $2.2B. TOU also announced a special dividend of $1 per share, which we like. The company already paid out $6.52 per share since December 2022. Overall, a decent report, but the key determinant for TOU going forward is still commodities prices. We continue to like TOU due to its very strong management and shareholder-friendly policies.
5i Research Answer: