Q: Comments on their report?
Do you see SGY making a recovery?
Do you see SGY making a recovery?
5i Research Answer:
Production rose 13%; but revenue of $168M missed estimates by 6%. Production was a record, and 2024 production guidance was maintained. Debt declined $62M to $290M. Cash flow was 78c per share, down from 88c on lower commodity prices. Debt is less than 1X cash flow now. Operating expenses fell by more than $2/barrel. We would consider it a decent quarter. We like the debt reduction and the capital returns to shareholders. We would not expect much cash flow growth though unless prices pick up. But it is cheap and has an attractive yield for a midcap sector stock.