I've been long NOG off and on for about 2 yrs. It used to be a good swing trade. You'll see it move pretty much in lock step with the rest of the Bakkens. I would expect it to get close to $30.00 before the year is out.
Nope, he is not arrogant, but is very helpful.
It is not the lawyerly issue either ...he is just really well informed and very smart.
He listens to local oil rig counts, knows which areas are not flooded, etc.
For example.... he knows that there are 199 active oil rigs in ND this week....did you know that?
(skip the 1st 1 min of local ads)
Arrogant, yup, too arrogant, possibly. I stand by my staement as it is in general terms, not specifics. Gee, if I only could have the knowledge that you think you do...
It's the lawyer in ya, I understand.
<<"Many E&P's prefer a partner with wells to derisk the costs. NOG's smaller acreage areas would offer derisking.">>
fishinearl, not to sound too arrogant but it's pretty obvious from your above statements you don't know how the
O&G business works. Let me suggest that you start by learning about drilling and spacing units, then progress to forced pooling.
I disagree with boepd. He could be right, but could be wrong too. Any company needs growth to be valuable. All companies need a vision many years out. If NOG just sat back and collected checks as boepd suggests, it could and maybe should become a Reit (90% of profits are paid out in divedends). I doubt this though.
If NOG is a true growth company looking for the future, it could aquire another company with good acreage in the Bakken and elsewhere. Could NOG become a real E&P company? Sure they could. NOG could very well be bought out too by many companies seeking good Bakken acreage. Many E&P's prefer a partner with wells to derisk the costs. NOG's smaller acreage areas would offer derisking.
Any good CEO has a vision. What Reger's is is unknown. The current NOG model could change 1,2, 3 years out. To say that NOG will never be bought out or buy some other company is lacking vision.
No one will buy NOG; NOG will buy no one. NOG will ignore mullets like wifewants as it has since 1953. Nog will continue to acquire leases, wait for an AFE, write a check and deposit runs. NOG will never pay a dividend. The biggest change is NOG will have their run checks deposited directly to their account rather than do the old paper route.
YOU are right of course,I was trying to be conservative,that buyout values the bakken acreag at north of 8$, and shell is moving in to the basin now big so prics are going up