In some cases, if pipeline specifications allow and if downstream end users, e.g. gas turbines, are designed to burn the "hot" gas.
I believe most gas pipelines require that C2+ components be stripped, as compressor stations don't like liquids.
I'm a little concerned about the motive of the poster(s?) that were citing and misinterpreting TRR website data. Was the poster long and hoping to create short-squeeze? The problem with this hypothesis is that posting on Yahoo has little or no chance of creating a short squeeze, as in all likelihood, shorts are predominantly savvy traders/hedge funds and neither follow Yahoo message boards, nor even if they did, would not fall for such an obvious and stupid ploy. The other more concerning alternative is that the poster was a long hedge fund wanting to exit a sizable position with minimal downward price pressure. One way to do this would be to post seemingly positive information on Yahoo in hopes that enough readers would be fooled and enter/increase SFY holdings, expanding the buy market for the seller's shares. It could be neither and just a case of ignorance on the part of the poster. Time will tell.
For some reason one poster pulled some numbers from the TRR website, not understanding what they meant or how to apply them, and the bull has been flying ever since! Using your fictional production numbers above equates to .438 MMB Oil and 103.5 MMBOE Gas (6 MCF/BBLOE) or about 104 MMBOE. 2012 reported SFY EF reserves were 156.7 MMBOE. Therefore, at these fictional monthly rates, the reserves would be depleted in 1.5 months. Let's get real, folks!
You are obviously misinterpreting the numbers on the website.
Use a little common sense - 2012 Eagle Ford reserves 156.7 MMBOE or 940,000,000 MCF (6 MCF/BBL). At your stated production rate, just for gas, of 628,000,000 MCF/month, SFY would deplete reserves in 1.5 months.
I don't understand the numbers you are presenting as Swift Eagle Ford production. The web site data is for allowables, and it also uses a factor of 100 (not sure of its meaning). Nevertheless, on the same web site the total production for November (latest available) for all oil/gas wells reporting to TRR was as follows:
Month reported: 11/2013 Preliminary Production
Oil 54,457,319 (Bbls.)
Gas Well Gas 449,536,902 (MCF)
I would imagine their investment horizon is longer than one day. The iron ore reserves aren't going anywhere, just not attractive for CLF to mine at this time. Intrinsic value suffers to the extent that royalty revenues from Wabush will be delayed, and hence more discounted.
If SFY were able to sell Eagle Ford reserves for $2.2 billion, you need to back out net debt of $1.1 billion which would leave $1.1 billion. Dividing this by shares outstanding would result in a value of about $25/share, plus whatever the remaining reserves/acreage are worth. However, if SFY's Eagle Ford is not as attractive as the Baytex purchase, this valuation could be significantly less.
I'm not an expert, but as I recall from reading, there is a trade-off involved. Higher production rate is beneficial in that PV of cash flows greater, but ultimate recovery can be decreased if formation damaged from too high rates of production.
Leverage. Any price higher than $15.43 before the exercise date will make the call option strategy more profitable than buying shares outright at today's close of $12.87.
Not necessarily: the below is from Baker Street presentation:
"SERITAGE Realty Trust LLC is a Sears subsidiary formed in 2012 to redevelop some of Sears’ and Kmart’s most “shovel-ready” properties."
They are definitely involved in real estate operations and forming a REIT is a possibility.
The way I value gold miners is NAV/EV where Net Asset Value (NAV) is calculated on current gold price (and copper/silver, where they are also mined) less the "all-in" mining cost times the proven and probable reserves and Enterprise Value (EV) is market capitalization plus net debt. For NGD, I calculate an NAV/EV ratio of 2.0 using a gold price of $1200/oz, which is one of the better ratios for the eight companies I follow. However with gold miners, there is always the risk that the price of gold will drop, in addition to operational risks, e.g. the all-in cost to mine could rise. But given the high and increasing debt levels of the United States and other developed countries, I prefer to have about 5% of my investible assets in gold, and I use the NAV/EV ratio to pick what I consider to be the most relatively undervalued.