For those who take the time to read the release and actually understand what is going on, this report is not as bad as it seems on the surface.
There is an expense of 24.8 million on "Loss on commodity price risk management activities, net". Due to GAAP accounting rules, that is a mark to market non-cash "loss" based on future derivatives, which amounts to 9 cents per share. Allowing for the tax implications, KOG's non-GAAP earnings would have been very close to 18 cents. For those who follow WLL, their earnings beat by 9 cents. That was non-GAAP. Their GAAP earnings missed by 5 cents. Too bad KOG did not announce their non-GAAP earnings. Eventually, the street will figure it out.
KOG missed revenue significantly, and the lowered production guidance is nothing to celebrate either, but they are taking more revenue to the bottom line and are on target to meet yearly earnings guidance. I'm sure the shorts, bashers, and manipulators will dominate in the short term, but KOG is doing very well. Too bad Peterson is such a horrible communicator.
I agree but a miss is a miss glad I pulled some of my trading shares out this week I am still long but I think a buyout is going to be the payday bashers enjoy the moment it won`t last! I will buy back under a $11!
Sentiment: Strong Buy