Well the top line numbers look decent and will wait to hear/read the call tomorrow. When these new wells come on-line 2nd half of the year we should see a lot more cash flowing through - good to see we own 35% - lots of NG in those wells.
Well, the call sounded good. And from their comments another acquisition is definitely in the works for ARP. Sounds like we could see a big jump in the distribution in the 3rd/4th quarters with successful wells coming on-line. With the increased price in NG, ARP should really start printing money as they expand and that should roll over into the drilling program as investors there see higher returns. They weren't quite clear on the Marble Falls drilling but indicated that the wells drilled will return about 50% IRR so that sounds good.
The one thing that concerned me was their coments about trying to move back into Southwestern PA. I'd worry about over paying - prices there have really risen and while there are still some small producers with acreage that might need cash - much of that type of thing has already played out.
All in all a good solid report and looking forward to seeing these many wells get into production later this year.
I thought it was a good call as well. Results were good, but not stellar. They definately now have a nice tailwind behind them regarding gas prices. Hedge prices are rising going into '14, '15, '16 and '17!!
Cohen was right about the Barnett deals looking good now with gas prices solidly in the $4 range.
I think next Q will be interesting as the Marcellus wells will starting flowing to sales.
Still wish we could get more clarity on the Marble Falls as you said. I view that as a homerun area.
Interesting commentary on the drilling partnerships and whether it is worth having them or not due to having to give up so much acreage/prospects. I'll throw my 2 cents in, I like them A LOT. Yes, we have to give up quality acreage. It also helps reduce risk, provides a nice income stream and helps them develop acreage blocks that otherwise might not be MLP friendly due to needing so much development capital.
Agree, if they are to meet the $2.35 in distributions, we need to see a serious increase over the next 2 Q's.
I am curious as to what the next acquisition will be. I was upset to see both Pioneer and Quicksilver deals not come to fruition.
There is plenty of mature shale production coming to the market. I would not be surprised to see them land some more mature shale production.