Back to Blog
Rei guso drop7/21/2023 Ring Energy Calculation Of Adjusted Earnings Per Share (Ring Energy First Quarter 2023, Earnings Press Release)Īdjusted Earnings is an attempt to take out the effects of the hedging program when reporting results. In absolute terms, the company set a few records as noted above.īut what is important to shareholders is that the company made per share earnings progress when compared to the first quarter of fiscal year 2022. Management made an accretive acquisition that blunted the effect of lower commodity prices. This management did exactly what shareholders would expect management to do when faced with a declining commodity price. Ring Energy Comparison of Fourth Quarter 2022, And First Quarter 2023 (Ring Energy First Quarter 2023, Earnings Conference Call Slides) That is a big change from 50 years ago, when the largely conventional industry took more time to adjust to periods of oversupply. The latest technology has a lot of wells, whether conventional or not, declining overall at rates that almost "guarantee" a quick adjustment to overproduction during times of weak commodity prices. But as long as an acceptable minimal return is achieved, then the primary future risk is usually seen as more or less profits over that minimum amount. So, profits remain uncertain throughout the life of the well. The wells have a relatively long production life. But in the meantime, the company can demonstrate reasonable profits from capital expenditures because the cash flow in the future has been set by the hedging program. That will nearly always correct one way or the other. In the latest case, it would appear that oil demand and commodity price actions are going in opposite directions. Instead, the hedging program is there to justify capital expenditures and to assure lenders of a cash flow should a downturn last. Those who think that hedges matter to the market only need to look at the latest stock price action to realize that the market does not value the hedging program at all. Yet this is exactly what the hedging program is designed to prevent. So, when commodity prices drop, then the stock price follows regardless of the hedging results.īut there is also some investor confusion that if the company reported a certain level of profits when commodity prices were great, then surely the company should be reporting losses in the first quarter. The reason appears to be that the stock market values the company based upon the prices received, without hedging. This is something that I have seen in the commodity business for a very long time. Ring Energy ( NYSE: REI) reported profit progress despite a commodity price drop. Overall it's a damn good album and that's exactly the reason why it's rough to say goodbye to them cause they showed that they still had the capacity to produce a lot of excellent material.(Note: This article was in the newsletter on and has been updated as needed.) That doesn't mean it's close to their early albums either though, it's another type of rock. So basically the album sounds like it's from 40 years ago, pretty weird but I guess it gives it some identity, and this way it ends up being far away from their electro-rock/britpop inspired sound they've been creating for a while now. For some reason there's like a vintage filter on every song, even the singles released earlier. It's not super upbeat and has a pretty big "indie rock" feel to it. Since that's their final release I couldn't help being a little sad while listening to it. If I had to rank the band's albums : PORTAL > ALARMS > Sea and The Darkness > See More Glass > Parade > Baby, It's Cold Outside > Hamanasu No Hana > Ame Nochi Galileo (of course every album is a must-listen)īought Galileo Galilei's last album this week, Sea and The Darkness Click to expand.Since that's their final release I couldn't help being a little sad while listening to it.
0 Comments
Read More
Leave a Reply. |