LRR Energy (NYSE: LRE) shares currently have a dividend yield of 12.90%. LRR Energy, L.P., through its subsidiary, LRE Operating, LLC, engages in the acquisition, exploitation, development, and operation of oil and natural gas properties in North America. The average volume for LRR Energy has been 179,000 shares per day over the past 30 days. LRR Energy has a market cap of $292.3 million and is part of the energy industry. Shares are down 12.7% year to date as of the close of trading on Friday. TheStreet Ratings rates LRR Energy as a sell. The company's weaknesses can be seen in multiple areas, such as its disappointing return on equity, weak operating cash flow and generally disappointing historical performance in the stock itself. Highlights from the ratings report include:
- Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. Compared to other companies in the Oil, Gas & Consumable Fuels industry and the overall market, LRR ENERGY LP's return on equity significantly trails that of both the industry average and the S&P 500.
- Net operating cash flow has decreased to $17.26 million or 16.31% when compared to the same quarter last year. Despite a decrease in cash flow of 16.31%, LRR ENERGY LP is in line with the industry average cash flow growth rate of -17.85%.
- LRE has underperformed the S&P 500 Index, declining 10.86% from its price level of one year ago. The fact that the stock is now selling for less than others in its industry in relation to its current earnings is not reason enough to justify a buy rating at this time.
- LRE, with its decline in revenue, slightly underperformed the industry average of 10.1%. Since the same quarter one year prior, revenues fell by 10.6%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.
- LRE's debt-to-equity ratio of 0.87 is somewhat low overall, but it is high when compared to the industry average, implying that the management of the debt levels should be evaluated further. Regardless of the somewhat mixed results with the debt-to-equity ratio, the company's quick ratio of 1.33 is sturdy.
- You can view the full LRR Energy Ratings Report.
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