Uhemmm...I'll have you know that the US Govt interest expense was a mere 127 billion for the 3 months of OCT NOV DEC 2013. A 500 billion dollar annual run rate of interest expense with $3 Trillion in expected revs for 2014...A minuscule 17% of our revenues. There are still plenty of the rich and middle class to tax.
There is no inflation or bubbles! Full steam ahead with monetary ease. Print us to full employment and prosperity! Aaarghhh LOL
You do realize UPL is highly profitable at NG prices below the $3 level? They're also only spending capex within their operating cashflow so there aren't really any debt issues. This is a rock solid natural gas play IMO. I don't see this going below $20 unless NG drops below $3.50 for any length of time.
Okie investment community
These outside investors like TPG don't acquire to sit on this type investment for 20 years. 2 years is more like it.
The co. is being groomed for sale. Obviously they want to trim the fat and make this a lot less risky for a buyer.
I like it because it means SD might be around for quite a few more years. A more conservative approach with a focus on production and efficiency is what I'm looking for.
Here shaking the trees scaring the monkeys out these trees. Oh and because I serve a purpose taking money from dupes buying this shxt up here. No need to insinuate I want to invest anyone's money but my own. Every man for himself in this gambling house.
Seriously...Any reasonable valuation model puts this at $50 or under. Everything over that is froth and should be sold!
These longs are in dreamland. They dont' realize they've bought this overpriced turd. It's a $50 stock at best.
This is a buy based on efficiency/cost controls that will take place under new directorship/management team. TPG will add value. Just a matter of how much and when.
CFO addresses hedges during conf call....
"Next, I would like to address our hedge position for 2013 and 2014. In 2013, we have put in place downside protection of approximately 78% of our projected natural gas production at an average price of $3.72 per Mcf. On the oil side, we have downtime protection on roughly 88% of our expected volumes at an average price of $95.43 per barrel. For 2014, we used recent strength in natural gas prices to hedge approximately 13% of our projected cash production at $4.33 per mcf. We have also put in place 2014 oil hedges that project our downside on approximately 40% of our projected production at an average price of $93.63 per barrel which is well above the current NYMEX strip."
CHK is hedged conservatively on the NG and Oil sides. This should add more confidence to their cash flow/earnings power going forward. I'm a lot more confident in this management team than ever before.
No professional short would be shorting an energy with this kind of BOE growth. Go try JCP...that's a co. with declining fundamentals. Buying dips here.