The Lehman report is hilarious. For starters the headline is "hidden Gem". These are some quotes:
"...we had the most difficulties calculating XTXI's price target and explaining the wide gap relative to its current stock price level. Specifically, we are somewhat dismayed with XTXI's cheap valuation despite the high level of visibility into strong growth prospects..."
He's on the right track anyway. Let's hope this doesn't ruin any buying opportunities down the road when Yorktown distributes again.
By the way, what kind of sensitivity does XTXI have to natural gas prices in your opinion? They are driven by volumes, but if prices are down enough then is it not true that E&P activity will stop, and there will be no more growth opportunities for xtxi?
I think if gas prices were to go down, the slowdown in E&P activity would still be very far out in the future, but people would nevertheless price it into xtxi now rather than later.