Lease Operating Expense. I've leased my property to Energen years ago when they were exploring/drilling..... The price paid to lock in your acreage for usually 5 and 10 yr agreements. Usually an option to re-lease after 5 at 2X the original if found plus 3/16th's royalty. Colorado and Montana property is gone....off the books....% of KWK holdings IDK...but I'd say at least 12-15% of total acreage.
which way it moves after the report is released. Last Month they missed it completely....projecting 1.33 TFC....we are at 1196 and by Thrs will be below 1,000.
The production guidence is the key.....4th qtr is done and over with. Look for projected LOE range....last year was .74 to .76....with costs at 3.40 roughly. KWK has hired a rig to drill all year in the Barnett and work over net 75% ROR....hopefully guidence will be flat to slightly up....
The EIA Report will be titled: eia.gov/forecasts/steo/report/natgas Short term energy outlook and price forcast for the remainder of 2014.
they projected 1.33 TCF left in storage at the end of March...... Thats a forgone conclusion....we are headed below 900 bcft....and NG will be scarce. Fireworks in 20 minutes....hold on for the ride.
The 4th qtr is gone and in the books. The emphasis is forward guidance and costs to produce the volume. LOE will fall, but by how much? $.15 lower LOE would be huge as expenses are curtailed and gone from the Montana and Col properties. ENI activity will be key as well. ENI is fronting the JV with $50M and KWK is operating the drilling. Key location/area and a good horizontal well multifracted should produce good numbers. If very good results then that venture could be excellerated by with KWK injecting proceeds close to $100M + ENI's $100M and would net 45 horizontal fracked wells....could be huge. Any news on HRB will be key (obvious). We need that catalyst to get the PPS high enough to dilute and remove the 2016's. If West Texas drill hole results are exceptional that could be catalyst enough with a good projection on profits....Great time to be long the stock....a lot in it's favor.
Next 3 months well see 3-4 announced deals.
I got a feeling this release will be more than an earnings announcement. Too much delay involved and stating we will use the full allotment of time. I smell a multiple announced scenario. Earnings were calculate d by the 3rd week in Jan....I bet you something is up. Have a great weekend.
90M Col + 45M Montana + 350M revolver = $500M to drill in West TX....+ ENI $500M and you get roughly 150 horizontally multifracted wells producing 250 b/day = $1B in annual sales.....without HRB....go figure again. Long the stock.
The US had NG storage reserves in the 4th Qtr.....today they are gone! NG prices on the 30% unhedged is way up. Liquids are up. HRB JV information is most important.....it provides capital to expand Barnett AND FULLY fund West TX 50-60 wells at 250 b/day....the catalyst will move the pps high enough to dilute and take out the 2016's.....then in 5 yrs the HRB JV is in production.....in the mean time West TX is the growth catalyst! Looking forward to the earnings call, and Energy Conf CC as well.....
I'm not concerned with 4th Qtr earnings..... 1st qtr earnings will be over in 3 weeks and KWK will be carrying a lot less LOE, - Col, - Montana, - West TX expenditures even though we are operating/running the drilling going on in TX. ENI is funding it.
Swing with both fists, upper cut, rope a dope.....Still standing and I am not selling. 3 weeks from today inventories will be