Q: Please comment on their recent earnings. Market did not like it. Any hope for improvement in next quarter or two? Thanks.
5i Research Answer:
Sales of $1.75B beat estimates of $1.60B; EPS of a loss of $1.69 missed estimates of +90c. Avg. production rose 8.9% to 659,204 boe/day. Operating costs fell 9%. The loss was due to accounting issues and one-time charges and not really reflective of cash. Cash flow was solid at $2.29 per share. No special dividend was declared, as was declared in prior March periods. This likely contributed to the decline in the stock. Production is already ahead of year end numbers, and we do not think things have changed much here overall, and we would expect improvements (commodity price dependent, of course).