The MPO reserves report showed a $1489 mm value at $91 oil and $2.76 gas compared to a $1450 mm enterprise value. Seems another data point for good value. Just a guess, but it feels as if this stock could take off with the strength in oil price. Also, if gas goes from $2.76 to $4.76, the gassy cos reserve values are going to look a lot better.
Midstates’ 2012 proved reserves had a net present value discounted at 10% (“PV-10”) of $1,489 million, up 115% from $693 million at year-end 2011.
I think the majors would be going for bigger targets, like XOM's XTO deal, which I'm sure they wish they had waited on. There's been mention of APC and NBL, among others, they have good positions in the US and international. If MPO can meet their guidance, seems the biggest risk is the oil price. MPO is majority owned by private equity, only 30% of the shares are public, and the pe's will want to cash out, so they would sell, but the probable cash out is just doing secondaries.
CNX reserve report, PV 10 value of around 4tcfe of proved nat gas is $1240 mm, 31 cents /mcfe.
Based on these prices adjusted for energy content, quality, hedges and basis differentials ($2.81 per Mcf, $52.09 per barrel of natural gas liquids, $75.77 per barrel of condensate and $89.71 per barrel of crude oil, respectively), the pre-tax discounted (10%) present value ("PV10") of the Company's proved reserves was $1.24 billion for 2012 compared to $2.86 billion at year-end 2011.
And earlier in the release, they boast, what am I missing, that finding costs are more than present value, 46 vs 31 cents. And they have another 18 tcfe of potential reserves. And the other part of their business is coal. Probably can say that at least the gas business is better than the coal business long term. But why would you grow you reserves? "It's all I know how to do".
CONSOL Energy Adds 954 Bcfe from Drilling in 2012; Achieves Drill Bit Finding Cost of $0.46 per Mcfe; Replaces 611% of 2012 Gas Production; Proved Gas Reserves Grow 15% to Record 4.0 Tcfe
Today on cnbc Art Cashin when interviewed indicated that when the Sports Illistrated model was from the US, the Stock market 88 % of the time closed positive on the year..
So there ya have it..no need for P/E, or Sale ratios or BOEPD or anything else.. just buy a Sports Illistrated. and you know what ya need to know..