KGEI Lowers guidance

[Fraser921]

Dan will have to redo models

Bad bad bad
Lower volume
Higher expense
Lower prices
Delays
Shut in

[dan_s]

I have lowered my valuation of KGEI, but don't overreact to timing differences. They do impact Small-Caps the most because each well is more important than they are for the Large-Caps that have thousands of wells and are running a lot of rigs.

My updated forecast model for Kolibri has been posted to the EPG website.

[Cliff_N]

Fraser921 why would the model change? The inputs to the model are changing and therefore the outputs will change.

Cliff

[Fraser921]

You answered your own question and Dan validated by lowering his numbers.

Where did i say he would have to change the model?

I said he would have to redo it. And redo it, he did.

Lower volume
Higher expense
Lower prices
Delays
Shut in

[Cliff_N]

Quote: "Dan will have to redo models." Again, the MODEL did not change. The data changed.

[allen46]

Cliff, you are correct. Fraser is very stubborn.

[dan_s]

See my comments about KGEI under the Small-Cap Tab. If the Q4 production miss is more than a well-completion timing problem, I will be concerned. I have lowered my valuation by $0.50/share.

As I have posted here many times, most of the stock valuation are going down because I have recently lowered my oil & gas price deck, which was discussed in Thursday's podcast.

Most of the companies will report much better Q4 results than what they reported in Q3, including KGEI.