1. They don't have anymore write-offs, or write downs from selling the billion in assets last year.
2. They didnt accelerate their Lindberg spending.
3. They dont have any significant new ISSUES like each of the 2 previous quarters, like the higher energy costs and energy shortages.
With oil prices being near or over 100 for a while now, you'd think they could ease off their hedging, or that the hedging costs would come down as 100 isnt a high, but within a range.
We just had investors day, so Lindberg has to be on schedule. I'd like to see some pics of their new construction on their website.
I'd like to hear a comment on Phase II approval progress.
I'd also like to hear a comment on their "debottlenecking" efforts that they talked about a few weeks back.
There is at least one negative. They had the asset sales scattered throughout last year. I'm not sure when exactly it will happen, but the 4th quarter may be the first one not to have any partial revenues from those assets. SO LOOK FOR 4th Q PRODUCTION QUANTITIES TO BE LOWER THAN ANY OTHER QUARTER LAST YEAR, AND LOOK FOR ESTIMATES FOR TOTAL 2014 PRODUCTION TO BE SIGNIFICANTLY LESS THAN 2013. We sold land and producing wells. we''ve seen a production drop, but havent seen the entire drop for an entire quarter. Sure, higher energy will help offset that, but have energy prices risen to offest the sold well production. And lower production doesn't necessarily mean things will be bad. We can still make money this year, but with lower production and lindberg costs, it wont be as good as you hope. but smart investors are looking past that.
So when we get through that, and we stop paying for lindberg construction, and we stop paying for lindberg drilling, look for production and earnings and cash flow to all grow. Then it will be party time. and the mid teens.
pgh does not volunteer much information during the course of the quarter.
so we are waiting here in abeyance, anticipating continuing positive results.
experience taught us caution, and I take the safe route waiting for tomorrows reports before taking any further action.