I gotta blame this action purely on Floyd...you can't go talking up the Utica...about how good the wells measure up then do an about
face while mumbling about drilling shatty wells and and running one rig for 2014. I'm not alleging they are doing the following but I've seen it occur before...a stock with heavy insider position actually creating lower share value while accumulating more shares. This is and end game for money....and I don't trust insiders anymore than I do outsiders. I just find it peculiar that the insiders seem to keep loading the boat at the same time they disseminate disappointing information. I'm still mulling over what to think on HK going forward...I don't like the debt load and production forecast..but Floyd also has a good track record.....just tough to assess the near term trend here. Good luck if you have it figured out....they've got me puzzled for now. JMHO..GLTA
Part of his game is to keep you puzzled. With large acreage position in 5 plays, it gives Floyd the flexibility to move large CAPEX to those plays that are producing, and giving the most cashflow in this near-term time frame. The other plays are on the back burner.....but by no means are dead---just because he isn't drilling them with equal vigor at this point.
The Utica....Woodbine.....Tuscaloosa Marine Shale...........are all great plays, but for the time being, take 2nd seat and will have to wait for their time to get into the game. Other E&P operators are making huge gains in these exact locations..........but for now, the Bakken & El Halcon provide the kick-back of rapid cashflow that is the life-blood of HK.
i would agree with that... he's pouring cash into proving reserves AND increasing cashflow so that HK becomes SELF-Funding within the year..... game plan gets extended one more year due to some bad results......then he can explore more (UTICA, TMS, UTAH, Colorado, Wyoming).....someone bought 95,000 acres in the middle of the TMS play yesterday and didnt announce their presence.... I think it might be HK adding (in the middle of the good acreage) and supposedly per what i'm hearing, a rig moves back in the first quarter of 2014.