Pioneer Southwest Energy Partners L.P. Message Board
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I find this valuation on PSE ridicoulous, am I right? bit*ly/RdEd6A
I find this valuation on PSE ridicoulous, am I right?
bit*ly/RdEd6AThis topic is deleted.-
There is certainly room to grow the price. Obviously some accumulation going on and the price will continue it's stealthy move up. In short, volume appears to be limited by the lack of sellers. I think they all shook out last year. And it sounds like one Wolfcamp well would double our revenue. Maybe Pioneer is the accumulator since they would know just how valuable the property is. Mind boggling!
- 1 Reply to goto_gofer
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I think it would take 7 or 8 wells like the one monster near the Midland acreage to double production on a yearly basis. Nice how PXD pays for the science then PSE drills productions wells.
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valuation won't change until distribution starts growing. Basically all of the production growth and development since their IPO has been balanced out by falling prices, as all their $100+ hedges expire. Hopefully 2012 was a trough year for pricing and going forward we'll see both rising prices + rising production = rising distribution.
- 1 Reply to not_totally_gray
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near PSE acreage from PXD press release:
placing on production Pioneer’s first horizontal Wolfcamp Shale well in the B interval in Midland County, Texas, (24-hour peak initial flow rate of 1,693 barrels oil equivalent per day (BOEPD) and peak 20-day average natural flow rate of 1,510 BOEPD with approximately 75% oil content), which demonstrates the prospectivity of Pioneer’s northern Wolfcamp/Spraberry acreage that encompasses more than 600,000 gross acres,Sentiment: Strong Buy
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