the enervest article that mentions this: North Coast Energy (NCEB Mkt Cap 178M) Operating in the Appalachian Basin (PA, OH, KY, W. VA, and VA), NCEB is rapidly growing proved reserves both organically and through acquisition. Proved oil and gas reserves total 190 Bcfe to date, and are on pace to grow to over 200 Bcfe by the end of 2003. Production growth has consistently been strong, growing 14% in �02, and 16% year over year in the latest quarter. The 3,135 gas and oil operators in its core area present a myriad of acquisition opportunities for NCEB to continue business growth.
Management hedges a portion of its natural gas portfolio. For the remainder of 2003, about 70% of its gas production is hedged, with 2004�s production 83% hedged. While NCEB may not be as levered to price as CRK, the benefits of higher gas prices will certainly be enjoyed.
For valuation, NCEB currently trades at 12x the next twelve month�s EPS number. Projecting the production growth trend and assuming stable to higher natural gas prices, EPS could get as high as $1.10 over the next twelve months. If the shares trade closer to the group multiple of 14x, the stock could reach $15 over the next year.