From reading the CC transcript all I can come up with is the notion that they are not planning a buyback or dividend at this time. I suppose when Paploma came out and said they are going to meet with management about ways to unlock shareholder value people got excited then deflated once they read the transcript. However, as Patrello said, they have not been shy to buyback $1.5 billion in the past in good times so people need to understand the headwinds in the sector and use some common sense. Still a good company and trading for a good valuation, IMO. Rebuttles welcome.
The street was expecting better results and a better outlook, based on the results of a couple other drillers and analyst comments. Also, the stock had run up quite a bit in a short time and maybe needed to consolidate. If you notice, it fell down to its 50dma and bounced up, so the up trend is still intact. The stock is cheap and I believe it is heading higher. The drilling outlook has bottomed and is better now than at the same time last year with NG prices much higher and relatively firm. NG inventories are nearly 10% lower than at the same time last year as well.