Stock had a strong run into earnings with strong volume. Then Contango misses again, by ($0.37)! What are these investors seeing? Is there light at the end of this tunnel? Perhaps they're looking down the road and seeing further growth and profitability. As for me, I'm still under water and not too happy.
"The company continues to target total production in 2018 of 3.9 million barrels of oil equivalent a day, rising to 5.2 million barrels a day by 2020. That’s an increase of 1.3 million barrels a day by 2018 from second-quarter levels, and a doubling of production by 2020. To call that optimistic is putting it mildly."
If PBR can increase to 5.2 million barrels per day, it would catch up to XOM, which had 5.3 mm boepd in 2012, making it the 4th or 5th largest oil producer in the world, whereas it currently holds the 14th position. That would be astounding and even more so if the Brazilian government would step aside and let them make a profit!
Anyone have ideas on earnings? Contango missed the last two quarters by quite a bit. Furthermore, E*Trade shows projected earnings estimates for 2015 at $2.21, considerably below 2014's estimate of $3.03. Tomorrow's earnings are estimated at $0.69 / 0.613 / 0.47. Any thoughts on what to expect?
Can it get any quieter here? MCF continues to be rather volatile in trading, however I have held my shares, even though I am under water about 13% and am running out of patience (yeah I know patience is a virtue). With earnings looming, does anyone have a feel for what is coming? Do Keel and Grady know what they are doing? Any thoughts?
Thanks and GLTA
This from Dow Jones on E*Trade. No price target given in headline though.
I agree wholeheartedly with your post. I have fallen for the hype about Crimson Exploration and have traded in and out of it since Oct 2010. My CXPO stock was converted into Contango stock as a result of the merger and am still under water to the tune of about 15% overall. At one point I was at break even and maybe I should have sold in light of where we are now. I hope Keel and Grady can make positive things happen sometime soon but, at this point, I will be happy to break even again and get out, if I ever get the chance. All of my other stocks are up nicely and MCF is the only one dragging my portfolio down.
Wow, another big volume down day! Why is it that we can never seem to get any traction with this stock! It's like being stuck in a small snow bank and no matter how much you rock your car, you can't get out. You look at the snow bank and you say it doesn't look like a big deal, it oughta be easy to get out, but you just sit there and spin your wheels. Every time you think you are about to break free, back you go into the little hole! Argh! What gives?
Looks like shareholders will have to wait another quarter or two or three or ??? for better earnings here. In light of the many new wells they have drilled and are producing, I will hang on for awhile longer. It seems earnings can't get any worse although Alan and the gang might find a way to disappoint again!
GLTA and thanks to ED for his postings.
I came to this investment by way of CXPO shares that morphed into Contango shares with the merger. The news today seems to be setting us up for a letdown in earnings. With the Gulf well coming up dry and costing too much, that's got to affect earnings negatively. Production is up considerably though, "due to the acquisition of Crimson." What would these Contango clowns have done without Crimson? And to think I fell for CXPO's management assessment that their stock was worth, what $15 or $20 if I recall!!! What a bunch of F@#$ing hype!! I am still under water on this investment and it appears that may continue after today's earnings. Will Contango ever get it right?