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EXCO Resources Inc. Message Board

  • dean4614 dean4614 Sep 25, 2012 6:11 AM Flag

    wilbur Ross (huge exco shareholder) getting onboard China shale bid CNBC reports

    This should pop stock this morning once it hits locally. Would like more details, if anyone can provide.

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    • You asked for more info. Wilbur was on CNBC Fast Money talking about the deal in China. I cannot post a link due to Yahoo restrictions, but search 'Partnering with China on nat gas' either on CNBC video or google.

      As ever it's interesting to hear Wilbur's take.

      Sentiment: Strong Buy

    • Here's how I see this----
      China brings $ and their key people over here and they do some JV wells gas liquids etc. They also get a good look at tggt ie midstream. Plus the soon to be exporting facilities in LA & TX

      Take the team/technology back over to China & JV drill/build out mid stream ops.
      While this is occurring the export to china 2014/15 is growing closer

      By 2016 the price of nat gas/ngls globally will vary only slightly. My guess is $8-$10 today if it could traded globally-

      "The globalization of Natural Gas"-----cook with it and heat your home with it.

      Sentiment: Strong Buy

      • 1 Reply to jamesboy1000
      • If the global (ok, lets be truthful - ASIAN) price of NG is $10, then to be competitive US NG would need to be in the $4-$5 range today (assuming the exporters/shippers want to earn a decent IRR) and even lower once some of the proposed and under-construction export facilities come on line (Australia, Australia, Australia). Russia has had a grip on NG for a while and linking contracts to oil, but that is coming undone. There is plenty of research to examine that says the impact of exporting - to asia at least - will not do much to impact US domestic prices.

        That said, I think WR is pretty shrewd going to the Chinese as they probably need XCO more than we need them (specifically). It will all depend on how the deal is structured and whether there is any dilutive effect. Why would Wilbur dilute himself? Well, if he's putting up $500mn...u can figure it out.....I still think the bonds are a steal here at 9%

        DISC: Long XCO and XCO bonds and looking at the LNG transports

    • great and then in 5 years they'll say "go frac yourself"

 
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