Shares of Yuma Energy Inc.
rocketed nearly five-fold (up 366%) in very active afternoon trading Monday to bounce off a 40-year low, after the troubled Houston-based oil and natural gas exploration and production company reported audited second-quarter financial results, and said it has taken “significant steps to arrest the recent declines” of daily production. Trading volume topped 18 million shares, compared with the full-day average of about 316,000 shares. The company had disclosed earlier a net loss that narrowed to $4.0 million, or $2.55 a share, from $4.4 million, or $2.86 a share, in the year-ago period. Sales of natural gas and crude oil dropped 71% to $1.67 million, as total production fell 68% to 53,873 barrels of oil equivalent. The company said it has “substantial doubt” in its ability to continue as a going concern for the 12 months following the release of results. Yuma said discussions regarding its restructuring and debt are “ongoing,” and management is “hopeful” that it can reach an accord with its lenders. The stock, which closed Friday at the lowest level since August 1979, has not gained 32% over the past year, while the SPDR Energy Select Sector ETF
has tumbled 20% and the S&P 500
has gained 2.7%.
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