Brown's report is something to consider, however, these type of O & G reserve / depletion estimates change all the time and even if accurate today, it is uncertain if or when the effect on distributions will be affected...might be a couple of years or more down the line. No guarantees in the oil patch. Operators still hit gushers and still drill dry holes. It's an inexact science at best.
I'm inclined to see this as a buying opportunity and average down.
He has been doing a series on all these new trusts SDT, SDR, PER, WHZ, CHKR, ECT and overall I find them pretty balanced and well researched. The same day as his negative article on CHKR, he also posted a positive on on SDR. They are all valuation and reserve based analyses.
If you take issue with anything specific in the article, you should state it.
I see. So no specific rebuttal, just that they are paid hacks?
It seems that you have such low self-esteem that when you cannot understand something, rather than trying to learn, you prefer just to spew hate at those who actually do have some knowledge and understanding.
You are the typical schmuck who believes anything written by these scandalous Seeking Alpha bloggers who are not paid even for this free service to devalue stocks. They're paid hacks by short sellers and hedge funds while the gullible investors are left with scorch earth after the stock falls 25%. I'm sick of seeing you say anything positive about these paid hacks ok. GO AWAY!. Seeking Alpha bloggers have done more damage to the average investor then Cintron. These bloggers want to destroy pps and they do it for free. You read their analysis and say they're fair in this bogus analysis. Go away and don't come back. You are pathetic !!
Sentiment: Strong Buy
the pv 10 forecast will be revised each year taking into account trailing commodity prices. Since the latest ones were done using 2012 NG prices, they could well be higher next year if the 2013 average NG/NGL prices are significantly higher.
okay lisa,i,ll try, though not versed.a pv 10 that he reports a 46% reduction on is merely a measure of future cash flows.most trust standards are to reduce these by 10% /year.though not always the case.i,ve seen them be reduced then raised the following year.both hedging,overhead,and prices of the product are involved.sir brown would have scared the heck out of me,but in looking at the production #,s,it just not justified.hell,no one knows whats in a well or future wells and where costs are going.time will tell.as with some other selected trusts,i will continue to enjoy the distribution until at least half of the trusts term.a hot shot pup took a lot of my money away right or wrong.ed
The only thing I take issue with is the fact that CHKR seems to be selling LNG at 40% below market claiming transport costs reduces their price - which I think is BS. It may lower cost but not by over $1.50.