What did you think about TOU recent results. Sold off a bit on their release.
Stuart
TOU reported Q2 results; EPS of $1.35 beat estimates $1.03. Revenue of $1.13B missed estimates of $1.46B (largely due to lower commodity prices). EBITDA of $1.15B beat estimates by 26%. The company expects 30% production growth going forward, which is largely in line with estimates, but 2026 capital expenditures have ramped up for infrastructure for longer-dated production growth. Essentially, it needs to spend money now for greater growth down the road. Some investors are concerned with this and it may temper sentiment in the short term, but of course it is likely the best long term way to create value overall. Production rose 10% in the quarter. We would not change a positive view here; we think mgmt. knows what they are doing.