Q: How were the earnings in early May?The stock seems to be doing okay and any other thoughts would be welcome. THX
5i Research Answer:
Estimates for the Q2 have risen nicely in the past few weeks. The Q1 results were mixed, with revenue better than expected but earnings did miss estimates. EBITDA was 6% better than forecast and we would consider the results decent. Production, however, did decline 5.4%. The balance sheet is very strong with essentially no debt of any consequence ($72M debt vs $300M cash flow). Consensus does call for lower earnings in 2026, largely due to pricing. The stock is cheap and the dividend is attractive, with a very low current payout ratio (less than 20%). We think it is a decent stock for the sector.