EROC has a market cap of about 200 mill. They are generating 40-45 mill per quarter in EBITDA going forward keeping current commodity prices constant. Any commodity price increase is gravy. I know they have some debt issues, but I think EROC is undervalued at these prices.
I'm simply looking to see volume dry up and then the earnings to come in close to expectations. A discussion of the use of funds to pay down debt and the explanation of the subordinated shareholders conversion rights would be interesting. What I mean is that the subordinated shares cannot convert until some time in 2010, I believe, and can't do so unless certain payment levels are acheived. If they had not cut the dist., they would have been on track to convert. So I want to know if the subs will extend the subordination period longer to protect the common considering circumstances. (I'm sure the answer is no.)
Nat gas has bounced 15% in the last two days with oil up significantly as well. This is a big positive and the stock trades down on technicals. Check cnbc at: http://www.cnbc.com/id/15839171 for gas and oil prices. This is all a positive for EROC, CEP, BBEP, NGLS, VNR, etc...
I don't believe it dude. This is a bear market trap, things are getting out of hand. The fundamentals for oil and gas are terrible, the worst storage situation we've ever seen. We may flat run out of gas storage this spring. Makes no sense for oil and gas to be going up at this point, emotion is driving these prices. The crash could be horrific.