Premier always getting targeted when sentiment is poor, we’ve got a massive debt pile and the lower the oil price go the more difficult it is for us to chip away at it. That said, the entire E&P space is getting hammered, the smaller and more indebted you are (premier) the worse you’re impacted, but let’s not pretend it’s just premier under-performing.
Personally, I think the current share price (arguably accurately) reflects the concerns about the oil price, demand growth, trade wars, economic growth, increases in US inventory and that shale production growth continues at pace. More specifically, the concern for Premier, is that with an oil price starting in the $50’s we’d struggle to pay down the debt within 2020. A good portion of this years debt reduction is already locked with the hedging, but a declining oil price next year would certainly pose some challenges.
I’ve been very wrong about the oil market and premier so far, so my opinions generally don’t mean much, but with oil demand still rising (albeit probably slower than before) then it would only take a shale slowdown to balance this market. Will that happen, who knows, but if they don’t and inventories continue to build then their equity valuations will get obliterated just like Premier’s.