It would have been even better if they listed the names of the companies supporting the build...but I admit that isn't realistic. Plus, it might be premature to even think they have lined up all their suppliers. I wonder if an email to the company might shed some light. Unfortunately they don't like to tell shareholders too much...
I have to listen to the call but clearly the market is out of whack and too many E&Ps are getting trashed simply because the market is in one of its many irrational phases. I am hoping that I can buy more after the shorts pay their dues.
Most likely just a short. Shorts typically add little to the discussion since they are just short timers. I always love seeing shorts hurt badly.
I have been watching MHR for a few months and although I did not get in during the fire sale I am hoping to start building a position today if the stock pulls back a tad. As a primarily natural gas company MHR has been unfairly punished with the pull back in oil prices so this is a classic case of tossing the baby out. It seems to me that there are too many US based E&Ps on sale for the last month or so and we will look back at this period and wonder why we didn't back the truck up...then we will tell our selves "the next time this happens I will mortgage the house..." and we will get cold feet again. I any case I am always glad to see shorts go bankrupt.
Did mean buyout at $14? Stock is up 8% today. Up in after hours trading too.
Possibly but consider that the stock has been up every day since the hedging position was released. Rising natural gas prices are not a bad thing for UPL either.
You got that right, that is why the company put these solid hedges in place. Watford indicated that he just wants to get through 2015 as demand in 2016 and beyond is poised to accelerate with exports to Mexico and most importantly greater dependency on gas fired power plants.
Considering UPL production is made up of only 10% oil the new natural hedges look like they will see the company through, especially with a BE point of 2 bucks. Also, the company is getting much better prices from its Pinedale gas then the boys are back in the Marcellus. No long term debt due until 2018. By that time natural gas from shale oil wells will be dissipating, LNG exports will be flowing from at least one plant, deliveries to Mexico will be much higher and going higher, we will be seeing more demand from gas fired plants considering the shuttering of coal and gas plants and industrial demand will be likely be hire.
I think they will be able to cover the dividend. They found $50 million for the stock buy back so they they e able to pay the dividend. Lehmann still likes the company and he is a one sharp dude in my book.
I found out about this company through Forbes/Lehmann Income Securities publication. Lehmann recommends the stock for medium to low risk investors in taxable accounts. The company was featured in the November 2014 edition. It is described as one of the largest hedge funds institutional alternative asset managers in the world with approximately $39.2 billion under management. I am not pumping the publication but I do subscribe and in my opinion it is an excellent resource and I look forward to each edition. I am going to take a position in the OZM this week.
I hope the next five years are better than the last. The company has not proven to be a good long term investment. I still hold most of my shares, having sold a few during the last false buy out rumor. I thought EZ would have expanded its product line or have been acquired by now. Clearly the company is not looking out for shareholders as it continues to wallow in mediocrity. I hope that the NP5 lives up to expectations, but even so, EZ is simply a roller coaster with no clear long term corporate objectives, other than to chug along from cycle to cycle with a limited number of products. Too bad for shareholders, but great for Eli...
Looking at the company's December presentation I see from slide 12 that they have 90 -100% of their natural gas production hedged in 2015 and 2016. Oil is hedged 60 - 70% in 2015 and 50 - 60% in 2016. Doesn't sound like a company that is going to go bust in the next week or two like many are claiming. The worst part of all this hedging is that they miss a run up in natural gas if the weather gets cold in January as is now being predicted.
WLL debt just got a nice ratings increase. At less than $24 a barrel I would say the KOG deal looks pretty darn good. The fact that the bond market, not the stock guys, like the deal means a lot more than someone who may simply be short the stock. So argue with the bond people that just uprated WLL bonds based on the KOG deal. People trading stock know very little about a long term investment but the organizations that buy bonds are in the habit of getting their principal and interest.
At less than $24 a barrel I would say the KOG deal looks pretty darn good. The fact that the bond market, not the stock guys, like the deal means a lot more than someone who may simply be short the stock. So argue with the bond people that just uprated WLL bonds based on the KOG deal.
At least one analyst this morning on CNBC said he thought oil was near a bottom and that he saw hedge funds starting to go long the sector. He also said that OPEC will likely cut within the week to 6 months. As I have always said, the professional money will be back in before they the bell. From what I saw WLL actually beat on EPS as well as revenues according to some reports where the estimate was 14 cents.