Third quarter 10q released this afternoon. It's nice to see revenue and an average price of $50.20 per barrel of oil.

11,600 barrels of oil gross were produced a day. Production is/was supposed to be at 14,000 or more a day, but that's a barrel of oil equivalent amount. Either gas made up the remainder, or production dropped.

They only sold about half of the oil they produced. Maybe a tanker didn't take that oil before the quarter ended, maybe they're holding it to get a better price later, or maybe something else happened.

Production costs have declined year over year. That's good considering ERN is producing 3x as much oil as a year ago and selling it for half the price. Depreciation expense up, interest expense up as well, a lot. -$0.28 a share in earnings for the quarter.

That's what I see quickly. I'm looking deeper right now, particularly at the debt.

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Posted by Omada

Member since Jun 2015

695 posts

Posted on 11/9/15 at 10:24 pm to Omada

quote:
11,600 barrels of oil gross were produced a day. Production is/was supposed to be at 14,000 or more a day, but that's a barrel of oil equivalent amount. Either gas made up the remainder, or production dropped.

After reading a bit more, production did drop. Nigeria allowed them to export only 571k barrels of oil. The rest of their production nearly filled up the FPSO, so they had to cut production. 900k barrels were in inventory by the end of September.

For this quarter, they got a better export permit from Nigeria so they can sell 1.3 million barrels of oil. 800k barrels were sold in October alone; the other 500k will also be produced and sold. They plan to bring production rates back up to the old level of 14k barrels a day.

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