2024-03-11 02:13:13 ET
Summary
- Yangarra Resources pauses its long-term growth strategy due to low natural gas prices.
- Management announces a winter budget of C$20-25 million, less than half of the total budget, due to debt reduction commitments and low natural gas prices.
- The company's considerable liquids production allows for better performance than many dry gas producers.
- The liquids production allowed for far better earnings than many dry gas producers. This company reported a profit in fiscal year 2020 when many companies reported huge losses.
- The Halo Cardium interval is now attracting the attention of larger competitors.
Yangarra Resources ( OTCPK:YGRAF ) (YGR:CA) announced a pause in its long-term growth strategy for the current fiscal year due to the low natural gas prices. After the trials of fiscal year 2023, which was previously discussed, that is probably the last thing the market wanted to hear. Natural gas prices are weak and many natural gas stocks are irrationally priced as though there will never be a natural gas price recovery. Therefore, the stock price downside potential is already priced in while the recovery potential has yet to be considered by the market....
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Yangarra Resources: Pause In Growth Strategy