The following is excerpted from the question-and-answer section of the transcript.
(Questions from industry analysts are provided in full, but answers are omitted - download the transcript to see the full question-and-answer session)
Question: Tim Moore - EF Hutton - Analyst
: Thank you. Good move on suspending the dividend and accelerating the share buyback for better ROI. I think that was quite brilliant. You can
make a better impact there -- great decision.
Mark, maybe just starting out, maybe can Mark share a little bit more of his insights so far learned? I know it's only been 10 weeks, but I'd love to
hear maybe what you think you might enhance our focus a bit more on given his KPMG background.
Question: Tim Moore - EF Hutton - Analyst
: Great. That's helpful, Mark. And just maybe a higher-level question. How do you think about third-quarter production? Obviously, the prices are
up on WTI oil. But do you think you could see a small sequential increase from the second quarter into the third quarter for production?
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AUGUST 14, 2023 / 1:00PM, USEG.OQ - Q2 2023 US Energy Corp Earnings Call
Question: Tim Moore - EF Hutton - Analyst
: Great. No, that makes sense. And that's even better than I think some of the peers, even if it's consistent. And yeah, maybe Ryan and Mark, how
should we think about cash G&A expense? Do you think it will be consistent, maybe $13.5 million going forward? I'm just trying to think you could
probably get some pretty darn good operating scale leverage off of that to drive better incremental operating margins going forward. But is cash
G&A pretty fairly locked in now?
Question: Tim Moore - EF Hutton - Analyst
: Great. That's an answer, very wonderful to hear. And even if you get anywhere close to 20%, that would be nice flow through for the operating
profitability and the cash flow.
Ryan, I'm curious, just maybe shifting gears to your inorganic growth side with source deals. What are you seeing in the last few months in terms
of asking prices valuations from targets? Have they come down a bit more reasonable? I mean, I know that some of the private targets are getting
valued on twice what your stock and the public guys are at the smaller end. But how are you seeing that? And is the bottleneck more reasonable
valuation there? Is there something else that maybe would make you delay maybe doing an acquisition in the near term?
Question: Tim Moore - EF Hutton - Analyst
: Good. That's really helpful, Ryan. And just one last follow-up question. I'll turn it over to whoever is next. Just to relate that to leverage, it makes
sense you don't want to overly lever, but can you maybe remind us of what your maybe your max debt leverage might be for comfort? Are that
we talking maybe 1.5, 1.6 net debt to EBITDA for an ideal acquisition, something like that?
Question: Tim Moore - EF Hutton - Analyst
: Great. I really appreciate this, and that's it for my questions. I'll turn it back over to the operator.
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