Q: Your thoughts please on the latest quarter? Markets seem to like it and would you be a buyer?
Thx
Thx
5i Research Answer:
EPS of 32c beat estimates of 29c; revenue of $141M slightly missed estimates. EBITDA of $92.8M was 36% better than expected. Production was 23,589 b/d. SGY did lower its capital budget by $15M, to $155M. Cash flow guidance for the year was raised to $260M, from $255M. Production guidance was increased by 500 b/d to 23,000 b/d. The stock is showing nice momentum (near new highs) and remains cheap. The balance sheet is very strong. We would be OK buying, but it is a smaller company at $750M so we would size a position accordingly.