Stock price when the opinion was issued
EPS of $0.11 missed estimates of $0.13 and revenues of $42.41M missed estimates of $44M. Its FFO increased by 29% against the previous quarter, and its operational efficiency improved by 3% in average production. It demonstrated drilling cost reductions in the quarter, however, against the prior year, its FFO declined by 36%, and sales decreased by 28%. This was a tough quarter for the company, although it continues to carry a low net debt balance and generates positive free cash flow, but given the challenging oil market backdrop, we feel YGR may see some downside pressure in the near term. It trades at a cheap valuation, but we do not like its recent negative momentum.
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In the last 4 years, this has gone from $.50 up to $4.50. Continues to put up very good numbers. They could do 7200 BOE's a day in Q4, and perhaps could exit at around 8000. Their cash flow could be $1 next year, so it still looks very cheap. (Analysts' price target is $5.63.)