Yangarra Resources (YGRAF) just reported another strong quarter despite the annual Spring Breakup. Production increased a brisk 9% over the first quarter production levels. Management had taken advantage of weak service pricing to front end load the capital budget. This led to the unusual strong production growth when many companies decrease activities until the Spring Breakup is over and roads can handle industry activity again. Normally, the second quarter is the weakest comparison for Canadian companies. This time around, that was not the case.
Oil industry fundamentals appear to be somewhat detached from