The company reported second quarter 2011 production of 23,719 barrels oil equivalent per day (boe/d), increasing 22% following the completion of the Phase III development program at Glacier. Management expects Phase IV development work underway at Glacier to drive production growth of 24% over the next one year. Operating expenses for the quarter declined 17%.
Increased production and lower costs during the second quarter ensured robust cash flows from operations at $36.6 million, including hedging gains of $6.2 million. The company pegs capital expenditure at $216 million over the next twelve months, with $200 million likely to be invested in Glacier.The company has reduced its overall debt by 64% to $103 million during the past six months. Analysts surveyed by Bloomberg expect the stock to have 73% upside over the next one year. Sixty-seven percent analysts recommend a buy on it.