Cost ManagementThe sequential drop can be largely explained by two main factors: 1) lower oil realized prices at US$67.1/bbl; and 2) higher selling expenses due to a temporary increase in transportation of crude oil as they increased the volume sold via trucking.
Execution RisksExecution would be a key downside risk, such as the company not delivering the expected number of wells, productivity coming below expectations or infrastructure development to support higher outflow not coming online or taking longer than expected.
Financial ForecastsLower oil price is the main reason for the reduced 2024-26 financial forecasts.