Would a conversion to the LLC with a div. effectivly then have a "chill" on an attack and possibly be a "structural" method maybe not available to overstock for example, but might be available to NOG or other energy companies to protect its shareholder's value?
james, Based on the earnings release, I urge you to cover your short.
THeir prospective acreage has grown from internal funding at modest cost. Hit rate on new wells is 100%. THeir property is much more valuable than current trading price. THey have no debt and fund wells and operations intgernally.
In fact, their growing cash position and low share trading price culimated in a company Board approve $150 Mil stock repurchase plan.
Core bankable earnings reported as Adjusted EBITDA more than doubled:
" Adjusted EBITDA for the first quarter 2011 was $18.6 million, or $0.29 per diluted share, which represents a 190% increase over Adjusted EBITDA of $6.4 million, or $0.14 per diluted share for the first quarter 2010 and a 2% increase compared to the fourth quarter of 2010. "
From another article
"Most oil stocks are trading at a significant discount to 52 week highs. Even quality names that have significantly outperformed. The jobs numbers on May 6th helped push the stock market higher. There were several names with a significant turnaround on Friday:
Another May 6th leader is Voyager Oil and Gas (VOG). Voyager has seen a significant drop in share price since the recent Street Sweeper articles about Northern Oil and Gas (NOG). Northern also had a good day on Friday and seemed to signal a change in momentum. These companies share non-operator models, and both are in the Bakken. The articles did mention Voyager by name, but much of the article seemed to be a scare tactic for the purpose of making money on a large short position.
Most of the article used colorful language and made statements that speculated on the company's business. Some of the article did have good questions, but didn't have answeres for those questions. I still think NOG is a buy based on analyst's growth estimates. 6 analysts cover Voyager. Growth estimates are 133.3% for next quarter. Full year growth is 163.6%, with 242.9% in 2012. Voyager shares have decrease by more then 50% since its 52 week high. It has some interesting properties in the Bakken and DJ Basin of the Niobrara. Much of its Bakken acreage is in McKenzie and Williams counties. It has a one year forward PE of 14.21. Voyager could have significant upside based on negative sentiment based on little but speculation."
Not bad for a day trade, but earnings might be ugly tomorrow morning. I've learned over the years that a rise in PPS the day before earnings often has no baring on the quality of the earnings.
You are mistaKELY HUNG UP ON QUARTERLY EARNINGS hits and misses when current earning are essentially irrelevant to this company's valuation.
Its the acreage in the Williston that they control that makes it much more valuable then current trading price, and regardless of whether or not earnings figures had any questionable (tax related) adjustments that might be revised.