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Constellation Energy Partners, Message Board

  • nflatit nflatit Mar 2, 2012 10:04 AM Flag

    4th Quarter Oil revenues surged to 18% ...transition to OIL company underway

    CEP has silently tranformed itself from Nat gas play to Oil Producer

    Did you catch in this quarters earnings report that oil revenues SURGED to 18% of total revenues????

    Full year 2011 oil revenues were 5%, but last quarter they are now 18%

    Going forward earnings will skyrocket as more and more oil production comes online.

    CEP is hidden under the radar oil producer still labeled strictly as a nat gas play

    Get ready for major spike.

    2 upside catalysts:

    1. Much higher oil production

    2. Long term CEP will rise when/if nat gas prices rise

    either way it is win win for CEP...that is why they are considering brining back dividend soon!

    Revenue totaled $33.5 million for the fourth quarter 2011 and $105.2 million for the full year 2011. Included in total revenue for the full year 2011 is revenue from sales of $57.2 million, of which approximately 82% was from natural gas sales and 18% was from oil sales. The balance of the company’s full year 2011 total revenue came from hedge settlements ($82.7 million), services provided to third parties ($4.7 million), and losses on mark-to-market activities ($39.4 million), which is a non-cash item. During 2010, approximately 92% of the company’s sales revenue was from natural gas sales and 8% was from oil sales.

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    • If this is an oil play, I have some land for sale in Louisiana. These people should not be involved with investments they don't understand.

    • "Going forward earnings will skyrocket as more and more oil production comes online.
      CEP is hidden under the radar oil producer still labeled strictly as a nat gas play"

      And where is this additional oil production going to come from seeing they hardly have any oil properties? The vast majority of the properties they own are purely dry gas producing. They bought a tiny amount of oil properties a year or so ago for about $2 million if I remember correctly. You don't get huge reserves for $2 million.

      A lot of newbies here with no idea about the company.

    • "Did you catch in this quarters earnings report that oil revenues SURGED to 18% of total revenues????"

      Except for this statement:
      "For the full year 2011, approximately 95% of the company’s production was natural gas and 5% of the company’s production was oil."

      And what does it imply if 18% of revenues are for only 5% of production? It implies that the NG production (which is the company's core business) is hardly bringing in any revenue. So rather than oil revenues SURGED, you could just as well write NG revenues collapsed.

      Clearly they are trying to put a positive spin on it, but I don't find that reassuring. The actual amount of oil production is tiny.

      • 1 Reply to lizahuang54321
      • I do not understand what is not very clear about cep: ng is low and 70% of next year's production is hedged. the company saw the writing on the wall and bought a small oily area in kansas, where they are putting most of their drilling money into.
        it produces 315 barrels per day and going up (they are putting their capex there...) and except for recomplishments they do not put new ng drillings right now.
        It comes down to a very simple question: how much oil can they produce in 2012. based on 83,000/year they can reduce their debt by only $10M next year. if they produce 11M barrels (rate of 315/day - 4th q rate) they could do $12M reduction. if they manage to get more, than they will be fine. they are holding $17M+ at the end of the year in cash. I have a feeling some of it would go towards more drilling for oil or another small purchase of oily land. they are doing the right things in an organic way that does not dillute shareholders. there should be something something said for it.
        anyway, just a thought.

 
CEP
3.350.00(0.00%)Oct 3 4:00 PMEDT

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