Earning are irrelevant and not enough info on the public offering to know its effect. Not the best time for a public offering as the market is currently in a risk off mood. Hopefully Cowen will do its job and market & time the offering correctly.
Do you live in the North? The temperatures were in the 50s to upper 60s for the first part of this week in IL, OH, PA, NY etc. One cold day doesn't make a week so don't expect a big draw. As you can see below, last year the injection season started almost 2 weeks later than average.
From another blog that I trust
What's interesting to note is that the withdrawal season last year ended the second week of April, which began the final correction from 2012's massive deviation. If the same trend plays out this year, we are looking at four more weeks of withdrawals, which would probably cause a mild panic. Over the past six years, the average end of withdrawals is March 23, which would imply another couple of weeks of withdrawals.
The real question is, can the storage be refilled to the brim at a sub $5 price? If the answer is yes then NG prices will be capped at $5 (not counting a few spikes) for the next few years. If no then a new higher price equilibrium will need to be established.
It's like turning a microwave into a freezer. Imports thaw & exports freeze.
Also there is talk that LA wants all NG going into LA from out of state for processing to pay the state severance tax. They want to use this money to eliminate the State Income tax. If converting NG into LNG is considered processing then these LNG plants in LA will face price challenges.
It seemed that when Miller was there, possible future deals were a main topic and the last CC it seemed to be more about current operations & properties. I think that this is a plus for the stock as the previous deals were overly complicated and didn't really provide a lot of shareholder value.
I liked the CHK Haynesville deal, but not so much the Eagle Ford/KKR deal.
Are you clairvoyant? No posts on this board for 3 months and the morning after your post CHFC buys a bank. Maybe in a few months you can post how CHFC is being bought out at $50.
Wrong! KKR are money guys. They know as much about how to drill Eagle Ford wells as I do. That's why they hired Exco with a pitiful 15% WI and a large back-end risk. Exco takes all the risk if the Eagle Ford wells don't preform as project for the next 5-10 years.
Google "The Natural Gas Market Can't Save Itself, Let Alone Europe" Remember $6mcf + $6cost = $12 mcf and that is not cheap. I am not saying exporting LNG is bad, just that is won't cause NG prices to rise as much as some people believe. Also more players equal lower prices, that's why OPEC was formed, so consumers couldn't pit different suppliers against each other.
From above article:
But before that gas can be exported, it has to be frozen, or liquefied, then transported and unfrozen again at another terminal, a process that can cost about $6 per mcf. Terminals can cost billions of dollars to build, and that cost has to be recouped.
The result is that the cost of exported U.S. gas, even at current domestic prices, would be higher than what Europeans now pay, according to a Brookings Institution analysis, and $4 per mcf below the market price in Asia.
dooper - shimon is a spam bot that copies and paste a random message from another post on to the next post after it posts its spam, in this case a text alert spam.
This is not necessary good for NG prices. It cost $6 per MCF to turn NG into LNG and transport it. That means Russia whose NG is shipped thru pipeline has a $5 MCF price advantage and when they behave we have too much NG supply because our LNG is to expensive. Does anyone believe that the Europeans won't play us against Russia to get the cheapest NG prices. Look at what China & India do with potash prices between Canada & Russia/Belarus and each side there even has cartels.
The last sentence from the above post is posted below. It looks like Omeros is gearing up for approval and production of Omidria.
The foregoing description of certain terms of the Supply Agreement is only a summary of its material terms and does not purport to be complete.
On March 6, 2014, Omeros Corporation ("Omeros") and DSM Pharmaceuticals, Inc. ("DSM") entered into a Pharmaceutical Manufacturing and Supply Agreement (the "Supply Agreement") pursuant to which DSM has agreed to manufacture and supply, and Omeros has agreed to purchase, a minimum percentage of Omeros' commercial requirements for its ophthalmologic product candidate Omidria in the United States during a term ending December 31, 2015.
The Supply Agreement obligates Omeros to provide to DSM a rolling, non-binding long-term forecast of Omeros' estimated required quantities of Omidria. Commencing upon a first marketing approval of Omidria by the United States Food and Drug Administration, and thereafter, Omeros will submit monthly forecasts that will be used to calculate its firm commitment to purchase, and DSM's commitment to supply, quantities of Omidria meeting the minimum commercial requirements percentage under the Supply Agreement. Except as described, Omeros has no minimum purchase commitments under the Supply Agreement.
The Supply Agreement may be terminated prior to the end of its term upon the occurrence of certain specified events, including any mandate from a regulatory authority prohibiting manufacture at DSM's relevant facility in the absence of an agreement between the parties to transfer production to an alternate DSM facility. Upon termination of the Supply Agreement, Omeros will be required to purchase any quantities of Omidria that are the subject of outstanding purchase orders placed prior to termination of the Supply Agreement, except in certain circumstances. The Supply Agreement provides that upon termination, including upon expiration of the term, Omeros may request that DSM provide it or its designee with all reasonably requested assistance in order to transfer the manufacturing process to a new manufacturer, at Omeros' sole discretion and cost.
The foregoing description of certain terms of the Supply Agreement is only a summary of its mate
Did anyone really expect Miller to out fox KKR? The best we can hope for is a win-win situation, but only KKR will get the guaranteed win.
Assuming they didn't pay too much in fees/interest for what is really a refinancing, I like the deal. To me it shows that they think their stock price is still to low and that borrowing money is a better option than issuing new shares at this time.
You don't know if Wilbur bought the rights. He backstop the rights offering meaning he bought any shares that weren't exercised, but that didn't mean he bought my rights that I sold in the open market. The highest bidder bought my rights and that may not of been Wilbur.
Considering some drugs have been discontinued for safety issues even after final FDA approval, I am guessing "safe for use on humans" has a broad/loose definition at this stage of the process.
Some of the shorts could be long Exco debt and are creating some sort hedging trade. Also the 30% of float is a little misleading as the float is around 50% of shares outstanding. Per Fidelity the short position is 14.5% of shares outstanding (272m shares). Since we don't know exactly who owns the shorts we don't know if they would have access to the shares than are not part of the float.
No Buda wells are usually under $4m, because you don't frac the wells, therefore the completion cost are very low. The down side is that these wells usually have a much shorter life than an Eagle Ford well and also have steep decline rates (not as much curve) since you are depending on natural fractures to produce the oil. The variability of natural fractures also makes the Buda more of wildcat play than a manufacturing play.
More of a technicality, but on my 1099 form, Exco's "dividend" is actually listed as Return of Capital, which has different implications for tax purposes. So in a way it makes sense to eliminate the "dividend", since they just did a big capital raise, so why turn around and return this capital thru the "dividend".