Shrug, its not really a matter of gad going to $8. EROC produces oil and sells NGL (which tracks oil price). Goldman Sachs has a $80 oil target by the end of 2009. Throw in $80 oil and $5.50 NG and who knows what they will do to the distribution. At the very least, we may pay down debt faster...Or the credit facility size could increase.
If you are right it will give me another opportunity to add to my position since I missed it last time, had too much tied up in option spreads that expired in July, due that profit and less in Aug I will be able to double again if it gets below $3, another 62k shares would be nice.
Still time to buy before we hopefully hit 4 in the near future. When it hits 4 I would say there's not much resistance to 6. However, my price target for this idea is much higher, of course depending on the price of nat gas. I was sad to hear some wall st. analyst yesterday say that he was bearish on the price of nat gas. I hope he is wrong. Good luck to all longs.
UBS maintained their 6 dollar price target and said the distribution goes up 4th quarter next year. This is from Ron Barone. I would say he's a pretty good analyst not great. I would like to see it go up much sooner.