ERF's increasing value for leases in Northwest Montana:
Enerplus management has the forsight to purchase 46,500 acres in Northwest Montana Bakken area for $9,800 per acre in September 2010.
QEP Resources purchased 27,000 undeveloped acres - in the very same area - at the end of 2012 for $40,000 per acre. So QEP Resources paid $30,200 per acre more than ERF paid only two years prior.
If we divide the additional value of ERF's acres - which is $1,404,300,000.00 - by ERF's 200,000,000 outstanding shares we come up with $7.02 in added book value per share just for the increase in the value of leased land in Northwest Montana.
If we add this $7.02 to Yahoo's book value for ERF of $15.40 we come up with a new book value of $22.66 which is 39% more than the current share price.
Although purchases were in the same "general" area, who's to say what the specific areas will yield ? Maybe QEP bought mineral rights to better acreage with better leases with better technical prospects. Hence, higher prices. The devil is in the details.
unless they sell those leases it doesnt matter what they paid for them.it matters how they execute on them.if they could get some growth in those earnings and raises div then and only then will the price go back into the 20s
Looking at the % of increase in stock value, as of today's rally(5/3/2013) PGH is the stock on fire and riding high. You would think others would take your well pointed out fact into consideration and it would have a greater positive effect on the stock than it obviously is not having.
they also took the stock down when they sold production and replaced it for halve the price.the good leases and the production swaps and the hedging of 65% of oil at 100 should make this stock 25 bucks.