Wednesday, December 5, 2012

GMX Resources Cuts Q1 2013 Guidance Too ($GMXR)

Just finished listening to this afternoon's GMXR presentation.

I posted yesterday about the accompanying slides which had been released earlier. In the slides, there had been an unremarked upon 20 percent cut to production guidance for Q4. (Something we are used to from the GMX Resources "Chart of Truth" - which we need to update.)

In the actual presentation, they also mentioned that Q1 production guidance was for 90,000 barrels. That has dropped from the earlier guidance of ~110,000 barrels. So now there is a 20,000 barrel cut to Q1 guidance after the 15,000 barrel cut to Q4 guidance. 

As I said earlier, if you were making an honest attempt to predict something (oil production, unemployment numbers), sometimes your predictions would be too high and sometimes they would be too low. When they are always biased in one direction, it's a sign that something's wrong - like trying to let people down gradually.

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