142 new wells only added 3700 bpd production in March - a new "record" but that's a lot of wells for a small incremental increase:
Feb Oil 21,813,391 barrels = 779,050 barrels/day
Mar Oil 24,267,186 barrels = 782,812 barrels/day (preliminary)(NEW all-time high)
Feb Gas 23,369,839 MCF = 834,637 MCF/day
Mar Gas 26,254,101 MCF = 846,906 MCF/day (preliminary)(NEW all-time high)
Feb Producing Wells = 8,492
Mar Producing Wells = 8,634 (preliminary)(NEW all-time high)
Feb Permitting: 185 drilling and 2 seismic
Mar Permitting: 218 drilling and 1 seismic
Apr Permitting: 202 drilling and 0 seismic (all time high was 370 in Oct 2012)
Feb Sweet Crude Price = $86.88/barrel
Mar Sweet Crude Price = $87.25/barrel
Apr Sweet Crude Price = $87.85/barrel
Today Sweet Crude Price = $87.25/barrel (all-time high was $136.29 July 3, 2008)
Feb rig count 183
Mar rig count 186
Apr rig count 186
Today’s rig count is 191 (all-time high was 218 on May 29, 2012)
Western Asset Mortgage tumbles post-earnings as - like AGNC - it takes a big hit to book value (to $19.42/share from $21.67 on Dec. 31) thanks to a net loss of $1.18/share on its MBS portfolio. Net interest spread rises 12 bps to 2.17%. Non-agency investments up to 4.9% of $4.4B investment portfolio. "We may experience volatility in any one particular quarter ... but we expect our overall longer-term results to be very strong.
Don't let the name fool you. Only a small portion of their assets are in NY. Most of their MBS holdings are in CA and TX.
From a post on Seeking Alpha:
Gary Evan's presentation today put a value on Eureka Hunter of $750 mil to $1 billion (MHR owns 60%) and said that the company is still looking to add 30,000 or 40,000 acres to its Utica position, mostly by expanding on the fringes of its existing acreage.
Couldn't find it, huh?
There are numerous reports from EQT, Halcon, Eclipse, Range,Gulfport and others stating EURs of 1.5MM plus...and guess where? (Hint: XTO now has the same acreage.)
Aw, you can find it if you look hard enough.
And maybe you should also track down today's WSJ article about Harold Hamm and his insider deal with his brother in law where CLR is going to buy a $100MM pipeline that isn't needed and CLR will pay him (the BIL) whether or not they ever use it. No conflict of interest there, what?
Yes, odd isn't it how he can push through a $100 million pipeline for his brother in law that isn't needed and CLR will pay his company whether or not it is ever used.
MHR CEO today also confirmed their UTICA wells have an EUR between 1.5 and 3MM BOE.
How many years will they be there? Long after Bakken plays out with only 700M EUR of CLRs wells in Three Forks plays (according to the recent SA article from Zeits). How about FOUR TIMES as long?
The only issue you'll need to be aware of is that LNCO's dividends are tax deferred until you sell the shares. You will receive a 1099, not a K-1, but you will need to keep track of your dividends and shares if you plan to keep them long term.
For example, suppose you own 100 shares of BRY and after the takeover you will receive 125 shares f LNCO. For simplicity, assume the shares of LNCO at the time of the takeover are $40, meaning you'd get the equivalnet of $50 for your BRY shares, or $5000.
The first year (2013) you will receive $1.50/share (almost) for each share you own in dividends, or $187.
Your basis in the LNCO shares is reduced by that amount, to $4813. (You will need to calculate your own basis for any BRY shares you own, and figure accordingly.)
At the market opening on the ex-dividend date, the stock will trade on an ex-distribution basis, adjusted for the amount of the dividend paid.
This is because the total net worth of the company has been reduced by the amount of dividend that will be paid. As an example, if you had a dollar (and that was your net worth) and owed your sister thirty cents, after you paid her, you'd only be worth seventy cents.
A similar question was asked at the meeting, but more geared to how the growth of BDCs in general have increased competition in the sector. It is a challenge, they said, but feel they have the right team in place to acquire the types of companies that will be accretive to cash flow, etc. (pretty standard answer, what do you expect to hear at a public forum?) I think they'll have to be selective and might be difficult to grow as much as they have been. But they have a lot of dry powder to use. There also may be repurchases of loans by the companies they finance which will add to the cash balance.