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Constellation Energy Partners, Ltd. Şti. Message Board

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  • rrb1981 rrb1981 Mar 13, 2011 5:53 PM Flag

    book value ? buyout potential?

    There is no doubt that in 3 years, when the hedges start to run out, they will be faced with a large problem if gas prices are not $6.00/mcf.

    CEP management recognizes this problem which is why the shelf offering was announced. They will have to recap and the sooner the better. They need to move into oil or liquids rich natural gas areas.

    They could recap and restore the distribution, perhaps to as high as $.20/unit annually. That would be a nice return on the current price.