Q: What are your thoughts on earnings?
5i Research Answer:
Loss of 2c per share compares with estimates of +12c. Revenue of $984M beat estimates by 2.6%. Per share cash flow was 52c vs 53 estimated. Production guidance was maintained. Q1 production rose 74% year over year to 150,620 b/d. The large cash flow increase bodes well for debt repayment and potentially larger dividends. The company is striving to improve efficiency, and any operational improvements should improve cash flow further, and management discussed this in the corporate presentation, the earnings release, and the conference call. The stock remains cheap at 7X earnings. However net debt actually rose in the quarter.