Amazing to listen to these hucksters pitch to the rubes. Wall street's finest just eating it up.
How stupid do you have to be to believe this crap? They are losing money. What part of that is confusing? Rate of return this, rate of return that. There is no rate of return. Revenue isn't growing - $331 million 4th q of 2011, $337 million this quarter - so after spending $1.4 billion capex, $900 million of which was borrowed, revenue grew $6 million. They sold a few properties for $32 million and lost $12 million on it. Then the shmuck actually boasted about the balance sheet! Close to $3 billion in debt up $900 million and $2.3 billion equity down $100 million. Equity actually dropped over $100 million so far this year. But it's all superlatives. Productions up! Tell us the story about the fantastic new well again Uncle Jeff. Never mind you had to borrow 2X your cash from operations to drill it and a bunch of others you'd rather not talk about. Ngls price now 33% of wti down from in the 50's, The US is puking ngls and gas. They ain't the only ones waiting on pipe in the Marcellus. As transport capacity ramps up gas prices will head down.
Perhaps somebody should explain to the children pretending to be analysts how shale economics work. They don't for gas at prices under $5-6. And then only if you can use the tax breaks to shelter other income.. These "analysts" on the call would buy magic beans if you pitched it right.