Also, if you did not happen to notice it, the writeoffs of reserves which lowered book value and shareholder's
equity has resulted in a whopping 130% debt/equity ratio of leverage. Its a good thing they restructured the
debt and issued more equity last spring......look for more of the same as banks have had enough.
All of the reserve writeoffs exceeding 1.5-2 Billion dollars the last several quarters which no one has paid any attention to, means their PV10 will be much lower, not only due to lower oil pricing in the discounted cash flows, but the lower production from all the reserves they wrote down the last several quarters.
On any PE times earnings basis or on a book value basis for a company with 100% leverage, the value
of this stock is much closer to $5 than $12. IMHO.
In case you missed it, they wrote down another $900 million of reserves this last quarter Q3.
The new book value is now about $5.00/share. The stock is now trading at more than twice book value.
The earnings don't look like they support more than a 4-5 dollar value either.
This one is trading way off the reservation --I suppose hoping for a a buyout or a miracle.
Production was down too.