Stock price when the opinion was issued
It is paying down debt at $200 million per year and is half-way through the process of paying off the total of $600 million. When debt is paid off and it is generating $200 million excess capital it can use this capital for dividends and share buybacks. As they approach this point we should see the stock price increase. It is worth about $450 million today. Buy 7 Hold 2 Sell 0
It is in its third year (of three years) of paying back $600 million in debt. It still has $158 million to pay back in the second, third and fourth quarters this year. Oil prices are off but management still thinks they can do it with flexibility in capital spending and a supportive banking syndicate. The CEO and CFO collectively bought $250 000 of stock recently. This could be significant since there has generally not been much insider buying in the last few months since the April sell-off. If the debt is paid off they will have all this free cash flow for other purposes including re-instating the dividend, which would lead to a stock price increase,
It has been a very volatile stock. The price is lower than a few years ago even though the debt situation is better now along with higher natural gas and oil prices. Analysts are targeting a price increase of 125% over the next 12 months.