We WILL get top dollar for EF now,800M+company will be basically dept free over $10 soon, hang on for the bounce t
Gary is just pumping the EF property , he rarely shows his hand , he is making sure EF gets at min 800m and then , we
1) double our market cap
2) finish 2 more nat gas liq refinerys
3) pay off all short term dept
4) grow the new crown jewel the Bakken
5) creamer says MHR us a drilling machine"
6) lots and lots of proven land
7) more $ to "drill baby drill "
fyi on "pumping". That is not how A&D works in E&P. The buying company sends in their own geologists, engineers, etc and they peform their own DD/ internal evaluation using their own reserve/decline projections, price decks, hurdle rates, etc. Buyer does not care what the selling party says (or how the selling party values the property until final negotiations). What ceo says is for investor/analyst consumption.
You may be correct on what the current interested buyers are forgoing but when we have the claim to the top two most succesfull wells in the area now that attracts more buyers for next round of bids. I wouldnt be suprised if Chevron creates an offer in the near term that gary simply cant refuse.
If Gary could have sold the EF for a fair price he would have. That was the game plan. The sale profits were need to fund Utica build out and more ramp up in the Bakken holdings.
Gary didn't book the profit because he couldn't sell it. We've had a nice bump in production and that is being used to spin how valuable our EF holding are. Will that help, sure it will. But Gary still wants to sell it at a FAIR price.
Jj309 , you should know by know , EF is not part of their plans to grow, only to pay off all short term dept, and increase revenues to grow the new crown jewel of the country , Gary will now get his price.