Anyone know why MPO buys swaps in the 80's? How that works? Seems like they could put a floor in the 90's. Maybe they were cheap and they are banking on oil being in the 90's or higher? I'm clueless, somebody straighten me out.
I think oil is going to hang in the low 90's, that's the sweet spot where everyone makes money but still doesn't send the economy off the deep end. If it goes lower it won't stay their very long. Opinions are like....
how about building earnings? market doesn't seem to care about production or inventory, when are we going to start making a profit, this quarter? next quarter? when?
You will be rewarded in the long run, not happening as fast as we would like it. Everyone likes fast money, especially after the #$%$ whipping this stock has taken. You would think 32,000 boepd this stock would be at $15. This might not move north until they start showing earnings and earnings growth, NO OTHER E&P is treated this way. We got the one that is. Suck it up, quit your whining, sell, buy, hold, whatever, but quitcher belly aching.
i here ya and don't disagree, but it's the only reason the stock went up yesterday, and it's a metric that wall street cares very much about for these young e and p's, ebitda and boepd
I think the point is that MPO is spending more money on their wells, meaning doing something different, to get their IP rates where they are.
Caught the tail end of Q and A.
The oil price is hedged, the reason that they took a paper hit on revenues is because the oil price is up. 80% of 2013 and 70% of 2014 is already hedged if my memory serves. Oil prices shouldn't be a concern.
And along with market makers/specialists screwing you, you also have 70% of all trades being done by high frequency trading algorithms, you know computers that don't even look at fundamentals just order flow, etc. And the Citadels, Renaissance, Goldman Sachs, Credit Suisse, Deutsch Banks of the world pay extra to put their servers in the room right next to the servers at the exchanges so they can have millisecond advantages over everyone else. America #$%$ Yeah!!
Oil & Gas Awards Judges Comments
“The Midstates acquisition satisfies all of the criteria for a rational producing property acquisition. It adds P1 reserves rich in valuable liquids (66% oil and NGL’s) at $17/boe, and production at a solid price of $77,500/boed.”
“Operational synergies are already present for them in the Midcon region, which should translate to at least marginally improved LOE. With the majority of the financing to come from debt sources – in a period of low interest rates – the weighted cost of capital for this acquisition should be very attractive. Looks like a solid deal.”