I have been waiting on an entry point. Finally established a position here. SCOOP vastly underrated and new completion techniques are going to lift all bakken players as they work their way into the production numbers.
priced at 46, target 62, rated outperform, and sheeple sell.
if I was a suspicious man I would think that the price is being managed to get the average low enough that they can sell it to whiting in a similar deal to Kodiak. Same major stockholders involved in all three companies.
This quarter production results should be great as the majority of the wells now being completed using slickwater fracks and less drilling being done to hold land.
imho OAS is the most undervalued play in the bakken right now.
too bad Iran is running theirs up as high as they can and laughing at 0 and his toothless sanctions
biggest problem is traders. fundamentals are strong, new production scheduled to come on line as demand for product and related pricing power continues to increase.
patience grasshopper. good things will come to those who invest, traders might get chewed up and spit out as this doesn't have a big enough float to mitigate those that want to control it at times. fundamentals will come through for the investors though. expecting a 60% jump "relatively soon" isn't realisitc
most of those fraccing cannot afford to stop their production machine. if their production growth slows or there wells coming on line decrease they will get hit harder than they will from a temp drop in the price of oil. Their commitments to drilling rigs cannot just stop and they are not going o drill holes and not complete them less thee is a major drop in oil. Others have to keep drilling to hold land or prove up reserves to warrant better loan rates or meet financing commitments.
wrt HCLP, emotion may overcome logic in the share price until such time that the numbers for the quarter are posted and the growth in revenue and pricing power becomes apparent and then the sheeple will rush back in. I shifted some from drillers to add to HCLP today and will do some more if price continues to slide
although oil is dropping it should not impact the rate of drilling and completions unless it falls below $85 or so and even then the increase in proppant per well should offset any slowdown in drilling
chart EMS vs HCLP and it is easy to see why EMES was downgraded. It is way ahead of the sector and HCLP is still lagging SLCA so of the three major sand companies HCLP seems to have the most upside to me at this point.
if Yellowstone blows the world economy will change and the northern hemisphere will go into a mini ice age from all the ash in the atmosphere. forget about the dow and worry about foodstocks and gunpowder at that point
chart them over a year vs emes. all the new wells using much more sand and many operators can't get enough sand right now so I would say yes. check out abcaf for a ground floor entry. bought a chunk of that with a 3 year hold timeline
they are slowly covering and getting beaten up along the way. breaks my heart to see em suffer like that..not...they may have to push this through 17 next week
hope so, waiting on a deadline to pass for long term gains so I can move some of the $$ from SLCA (it ahs been very very good to me) into this and hope for another triple.