Ithaca Energy' s (IAE) share price dipped slightly despite the North Sea oil producer reporting record second-quarter financial results on the back of its April acquisition of Valiant Petroleum. We think this presents a solid buying opportunity ahead of key newsflow expected next month.
Investors must have been disappointed to see net oil production average 14,300 barrels of oil equivalent per day (boepd) in the first half of 2013, near the low end of guidance, but this was previously well flagged. More importantly, in tandem with high oil prices, this generated $100m (£65.7m) in cash flow from operations and half-year net earnings of $55.7m (up 125 per cent and 29 per cent, respectively, year on year). That easily services net debt of $346m.
