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Friday, August 22, 2014 9:35:11 AM
$NWTR wow Great news from Zacks Small Cap Research yesterday! New Western Energy reports revenue gain of 840% and marked reduction in loss.
http://finance.yahoo.com/news/nwtr-western-energy-reports-revenue-140000619.html
The company (NWTR) announced its second quarter results on August 18, 2014. Revenue was close to our estimate and increased by 840% Y/Y and 57% from the first quarter. EPS was a loss of $0.01, considerably better than our estimate.
We are very pleased with the gains and expect them to continue as more wells are bought online and the current wells are reworked to improve production.
Oil sales were $66,515 and gas sales were $44,952. All sales gains were due to increases in volume. Prices were fairly constant as compared to the first quarter, as was the discount from the NYNEX spot price. This discount is the “commission” received by the pipeline for transporting the oil to market.
Increased oil and gas production will result in higher expenses but the gross margins should improve through the second half of 2014 and into 2015. However, the increase in production will not lead to profits in the near future and cash needs will have to be met from raising debt and stock sales.
Due to the recent decline in stock price and the expectation of more dilution we have changed our price target to $0.75 a share.
http://finance.yahoo.com/news/nwtr-western-energy-reports-revenue-140000619.html
The company (NWTR) announced its second quarter results on August 18, 2014. Revenue was close to our estimate and increased by 840% Y/Y and 57% from the first quarter. EPS was a loss of $0.01, considerably better than our estimate.
We are very pleased with the gains and expect them to continue as more wells are bought online and the current wells are reworked to improve production.
Oil sales were $66,515 and gas sales were $44,952. All sales gains were due to increases in volume. Prices were fairly constant as compared to the first quarter, as was the discount from the NYNEX spot price. This discount is the “commission” received by the pipeline for transporting the oil to market.
Increased oil and gas production will result in higher expenses but the gross margins should improve through the second half of 2014 and into 2015. However, the increase in production will not lead to profits in the near future and cash needs will have to be met from raising debt and stock sales.
Due to the recent decline in stock price and the expectation of more dilution we have changed our price target to $0.75 a share.
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