Q: Would appreciate your current opinion on YGR after last report. Thanks
5i Research Answer:
EPS of $0.11 missed estimates of $0.13 and revenues of $42.41M missed estimates of $44M. Its FFO increased by 29% against the previous quarter, and its operational efficiency improved by 3% in average production. It demonstrated drilling cost reductions in the quarter, however, against the prior year, its FFO declined by 36%, and sales decreased by 28%. This was a tough quarter for the company, although it continues to carry a low net debt balance and generates positive free cash flow, but given the challenging oil market backdrop, we feel YGR may see some downside pressure in the near term. It trades at a cheap valuation, but we do not like its recent negative momentum.