1. From the open letter: Gary made 27 separate mergers or cash purchases during a frenetic 4 years (2009-2013) to assemble this amazing company.
2. From the Mahar article: "MHR should be able to expect rates of 20-30mmcu/ft pd (3-5,000 Boepd) per well in the Utica".
3. From the Mahar article: "EurekaHunter midstream system is likely going to need to get upgraded pretty substantially in terms of capacity very soon!"
4. From the Mahar article:
a. I think a 2014 exit rate of 40,000 Boepd is very doable.
b. There is an outside chance MHR shows actual profitability in Q4.
c. The above thesis should "light a fire" under the shares!
5. From the Mahar article: "A year from today -------production approaching 50,000 Boepd
a profitable company
a share price approaching $20!"
I'm not sure how the second author thinks MHR could realistically approach 50Mboe/d in a year without the boatload of cash that a Eureka sale would provide. If they exit this year at 25Mboe/d, a year from now the well's producing that figure will decline at least to 18Mboe/d. So they would have to bring on 32Mboe/d. At the present production rate that's roughly 64 wells at an average of $8mil a well for over $500mil on drilling capex alone. This was the point that the open letter author was making. Sell the pipeline (if there is an offer) and plow the cash back into E&P. The speed to $30/per share is a lot faster going that route.