Co just reported that it has acquired another 74,000 acres in the Sand Wash Basin for $31 mill.
SWN is completing its first vertical well in the play and is now drilling its second well in a five well program.
My biggest holding is ARP with smaller positions in BBEP and QRE. I work for an oil and gas company but would like some diversification into other industries.
I'm not really a REIT guy, but that yield on RSO looks too good to be true. 14%, are you kidding me?
Then I look to see that one of RSO directors bought nearly $100,000 worth of the stock last month. Think I just have to buy some.
One of my larger holdings is in a non-dividend paying company called Entek Energy, a little over 3 cents per share. It's Australian--510 mill shares out, no debt, and $8.4 mill in cash. Co has built a terrific acreage position, and is being carried for 20% after payout in a $30 mill drilling program by a large, private company.
In spite of a CEO who seems to be IR-impaired, think the stock could double in the next 6-12 months as more American investors find out about it.
Entek would be an excellent buy for SWN.
On its last conference call, SWN said it wanted to acquire more acreage in the area. Hello, SWN, may we introduce you to your neighbor Entek?
Southwestern Energy (SWN) is drilling about 30 miles south of the Focus Ranch unit right now. SWN's q2 conference call is scheduled for tomorrow am, so maybe they'll say something about their drilling results.
SWN would be a GREAT partner for Entek at Focus Ranch. I'd expect Entek's stock to at least double if they can hook up with SWN, one of the best oil and gas companies in America.
Yes, sometimes the best strategy is to do nothing. I've already got an oversized position in ARP and plan to hold it. Would sure feel better if nat gas prices improved or ARP said it's hedged to the gills!
Nice thing about the oil acquisition is that ARP is now less dependent on gas prices.
What else do you like in the income-oriented stocks?
I think a better way would be to sell the Sept $20 puts, which last traded at 60 cents.
By selling those puts, you'd get $600 (less commission) on 1000 ARP. The buyer can put ARP to you at $20 between now and the Sept expiration. If the price of ARP drops and the put buyer exercises, you get to buy ARP at $20, but your real cost would be $19.40 because you still keep the put premium.
Of course, if the price of ARP rises, the put buyer won't exercise, and you still keep the premium. But you won't own any ARP in that case.
The drop in gas prices bugs me more than anything. Let's hear what ARP has to say about its hedges on the conference call.
I'm afraid gas is going to have to reach a price where it displaces coal in the power sector. Some analysts estimate that price to be around $3.50. Cool summer weather is not helping, and production growth continues. EAI reported April gas production was up a stunning 4.5 Bcf/d YOY. That's why storage reports have been so bearish.
There is an article today on Bloomberg about some big increases in gas exports to Mexico. Wonderful Yahoo won't allow links to be posted, but you can find it by searching for an article entitled "Mexico's Pemex to Buy U.S. Natural gas through Mercuria." Let's hope it unfolds as they say it will.
Up big per the latest report.
Atlas Resource Partners LP
Short Interest (Shares Short)
Days To Cover (Short Interest Ratio)
Short Percent of Float
Short Interest - Prior
Short % Increase / Decrease
If I get called away by November, I'm okay with that because it means I got 22.5 for my units, got all the distributions between now and then, and kept the option premium.
Remember there are a lot of risks. Equity markets are near all time highs, interest rates are near all time lows, and the natural gas market is a mess.
If you are looking for more income like I am, you may want to consider selling call options on ARP.
The Nov 22.5's are bid at 25 cents, offered at 35 cents. Am tempted to sell some if I can get 40 cents, maybe even 35 cents.
It's more than the Cohen's.
Top Institutional Holders
Holder Shares % Out
Cooperman, Leon G. 5,230,194 7.95
Morgan Stanley 1,886,381 2.87
Riverstone Holdings LLC7,591,111 11.54
Carlyle Group L.P. 7,591,111 11.54
JP Morgan Chase & Company 1,291,403 1.96
Cushing Asset Management, LP 1,125,557 1.71
GLG Inc. 1,100,628 1.67
Guggenheim Capital, LLC 829,086 1.26
They should update their hedges in the next report. Gas prices are my main concern here.
Let's hope they locked in prices on at least some of the oil during the price rise that took place when Iraq erupted.
Nice, not too much. Prudent in my mind with the way gas prices have plunged.
: Atlas Resource Partners, L.P. Increases Monthly Distribution To $0.1966 For June 2014