Not my bid. I haven't had a lot of time to spend tearing apart the release, but my quick glance doesn't allay the nagging feeling I've had about these guys for a while. That is, how are they going to get to the next level? Yes, Tracy Mountain if it works will be a good step away from the treadmill, but the bulk of this company is drilling shallow holes that they can deplete quickly. Yes, the cash is rolling in, but their debt isn't falling and their production growth isn't lighting anyone on fire. Their exit rate for Q4 was 4,933 and they've fallen back to 4,600 now. I won't carp about high F&D costs, because developing new stuff comes in lumps and that's what they've just had, a lump. Hard to say, really, how they're doing on that front.
I'm just giving my first impression here -- as I said, I haven't had time to really ponder their results. So far URC isn't looking like anything exceptional. I'd be pleased to hear a different opinion. |
