Lonestar has built a sizable ~35K net acre 100% operated position in the volatile oil
window of the Eagle Ford (EF) and generated solid results through the drillbit while
bringing down costs at the same time. The company also has a sizable position in the
Bakken Petroleum System that provides future upside, as well as conventional assets
with long-lived reserves and a low capital requirements that provide consistent cash
flow. At a 2016 EV/EBITDA of only 4.1x, Lonestar trades at a substantial discount to the
EF average of ~6.0x, which we feel is unwarranted given its growth profile and strong
ON SEEKING ALPHA
Senior management is extremely experienced for a company this small.
The company has a new $500 million line of credit with a 20% increase in the borrowing base.
The company only has about three years of operating history, yet is at breakeven cash flow.
IQF Capital will joint venture with the company by providing $100 million in funding.
can't we join the party????
i also pumped TSLA in 2013.....