Adjusted profit fell to $137M or 61c per share, from $208M or 90c per share, but beat estimates of 57c per share. Revenue fell 38% on lower commodity prices, but production also fell 4.3%. Still, the production range guidance for the year was moved to 98,000 to 99,000 b/d from 94,500 to 98,000 b/d. The balance sheet remains very strong with net debt of $240M compared with 12-month cash flow of nearly $1B. The stock is very cheap at 7X earnings and looks good, though it has not done much so far this year (down 1%). ERF continues to buy back a lot of stock, and has already bought $41M in shares in the 4Q.
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