Whilst reducing debt is all well and good, having a safely serviceable debt to expedite growth through acquisitions or fast tracking production of newly proved wells is also good, in not better.
Good debt funds growth, you don't want the debt to crush revenue to the point you choke your growth, which usually leads to capital raising or no growth or worse, bankruptcy.
So DLS seem to be in a position with a serviceable debt, good revenue, the revenue hasn't been proven in the long term. If they can prove a steady revenue and keep debt/growth under control than all is good. The next HY will surely indicate where its heading.
DLS Price at posting:
$1.22 Sentiment: ST Buy Disclosure: Not Held
