No matter how one wants to spin this, I would rather own a company where the income is increasing, not taking a hit like this.
What this does is scare the weak hands and starts analysts down-grading shares.
My opinion is that the shares go lover over the next three months until we get another quarter of news.
I would rather put more money into my other major holding, LINN energy. They have started drilling on their two best leases and that will be the case for the next 5 years as they drill their best property holdings, containing natural gas liquids and some oil.
Cash flow is important but you are looking at a total amount.
The reason this company has been falling is the rest of the company's metrics. Debt has climbed every quarter and number of shares has climbed every quarter.
Take a look at the financial statements.
Per share metrics are not as good even though total cash flow is higher.
Your statement that depreciation is a large number for energy related companies is correct. But the depreciation has existed every quarter and that number is basically unchanged. So you need to concentrate on the other real expenses and items that shoved income down from 93c to 37c.
Then you might understand why this is dropping. I will not be surprised if it keeps dropping until the next quarter is reported.