I'm not a fan of Zacks investment research because I think they're generally sloppy, but they are projecting a loss of $.56/share based on the average of 4 analysts estimates. PQ has done a lot to get their balance sheet in order, with the biggest problem being the low price they received for their NG production. NG has made a tremendous move higher since March, and as they are only 15% hedged (at $2.98) will realize significantly higher prices. I look for a solid beat.
They report on August 1. Should be pretty positive with their limited hedges at $2.98 and the big run in NG futures. They just revised production guidance higher and capital spending down. Could be a blow-out for this small company.
NG in the U.S. has been in a dis-connect for several years at an ubsustainably low price. Fundamentals finally looking positive - Brexit should have very little affect.
If I was a creditor, I would take the company and sell it off in pieces. They have great assets. Shareholders become bagholders. I would look to buy into the new company.
Although unsecured, you have to believe the creditors are first in line. $3.9 billion of debt is a lot, and what started this was UPL's inability to make a simple interest payment back in March.
On March 20th this year PQ had hedged approximately 15% of their NG production at an average price of $2.98. I emailed them this morning and they have not added any additional hedges for 2016. I was pleased to hear this in light of my view on NG fundamentals moving forward. Not sure why the recent $1/share drop recently, but I used the decline as an opportunity to purchase additional shares.
The shorts got out over the last 45 days, and it looks like there are new shorts coming back in. Doesn't make sense with NG prices moving considerably higher. I doubled my position this morning at $2.65/share.
Encana holds 39.4% of the total acreage in Colorado’s Piceance Basin. Exxon/Mobil is next at 15.9% and WPX Energy holds 10.6%.
Encana is a real sleeper. They have significant holdings in the Permian basin and Eagle Ford, as well as Montney and Duvernay in Canada.
I have a bit of sellers remorse, but it was time to move on. If I was an unsecured debt holder, I'd let UPL go under and sell the company off in pieces to recover my investment. Screw the shareholders.
i sold my position this morning with an average price of $1.84/share. The debt is unsecured, but is enormous at $3.7 billion. Didn't have the stomach after seeing it trade at $.16 to keep gambling.
I've been looking for news at multiple sites and can't find anything. The stock is trading at $1.41 on 1.8 million shares, so if there is news it's somewhat supportive. If I run across anything I'll post it here.
Please!!! I rarely come to the Yahoo boards due to the amount of SPAM. I still own UPLMQ shares and find the occasional knowledgeable investor here that helps me sort through all the #$%$.
I would add that the recent rise in NG prices and a very supportive contango in the forward curve is not hurting the negotiations. It's also important to remember that their debt was unsecured, which gives them leverage in getting their lenders to the bargaining table..
Something is going on with SWN. Their 1Q earnings were a significant beat, and there is some serious accumulation going on. CHK doesn't have anywhere near the momentum - but that could change.