Painted Pony (OTCPK:OTCPK:PDPYF) reported Q3 earnings with strong production growth YoY. Also, thanks to the marketing diversification, realized prices improved as well. But adjusted funds flow stayed stable because of higher costs and lower gains from hedges.
As the company spent more than the cash flow to grow the production, the net debt increased. Because of the high debt and without profits, the company can't develop its vast assets. The probable and proved reserves represent approximately 55 years of expected FY 2018 production.
The market takes these difficulties into account by