Okie investment community
These outside investors like TPG don't acquire to sit on this type investment for 20 years. 2 years is more like it.
The co. is being groomed for sale. Obviously they want to trim the fat and make this a lot less risky for a buyer.
I like it because it means SD might be around for quite a few more years. A more conservative approach with a focus on production and efficiency is what I'm looking for.
Here shaking the trees scaring the monkeys out these trees. Oh and because I serve a purpose taking money from dupes buying this shxt up here. No need to insinuate I want to invest anyone's money but my own. Every man for himself in this gambling house.
Seriously...Any reasonable valuation model puts this at $50 or under. Everything over that is froth and should be sold!
These longs are in dreamland. They dont' realize they've bought this overpriced turd. It's a $50 stock at best.
This is a buy based on efficiency/cost controls that will take place under new directorship/management team. TPG will add value. Just a matter of how much and when.
CFO addresses hedges during conf call....
"Next, I would like to address our hedge position for 2013 and 2014. In 2013, we have put in place downside protection of approximately 78% of our projected natural gas production at an average price of $3.72 per Mcf. On the oil side, we have downtime protection on roughly 88% of our expected volumes at an average price of $95.43 per barrel. For 2014, we used recent strength in natural gas prices to hedge approximately 13% of our projected cash production at $4.33 per mcf. We have also put in place 2014 oil hedges that project our downside on approximately 40% of our projected production at an average price of $93.63 per barrel which is well above the current NYMEX strip."
CHK is hedged conservatively on the NG and Oil sides. This should add more confidence to their cash flow/earnings power going forward. I'm a lot more confident in this management team than ever before.
No professional short would be shorting an energy with this kind of BOE growth. Go try JCP...that's a co. with declining fundamentals. Buying dips here.