I have no theory. Only that they are lightening up on their overall holdings in MHR. They are not BUYING they are SELLING.. What do you make of it Cimarron2665. Would you be selling if you thought the stock was going higher through increased production, spinning off of Eureka to a MLP or selling the company...?? This puppy has done nothing for 2 years ..
MHR registered yesterday for the benefit of 3 large holders to sell (unload) 4,300,000 shares. If the Big Boys are starting to unload what does that say about me trying to be positive? I'm just saying.
Aristereia Capital to sell 1,700,000
Encompass Capital to sell 1,600,000
Quantam Partners to sell 1,000,000
I guess I'm just a numbnut for bringing this up. So all you 'smarties' out there, tell me what I am missing here. What's the positive spin you will give me now, that this opens up more shares for you to buy.
130 pages equates to about $ 25 million in legal/financial fees. I bet they'll want cash and won't accept payment in shares in MHR.. RFLMAO
Yeah numbnut and you are prbably one of GE's EVP's posing on this board trying to pump this stock up. Get a life! Heck you are probably GE in the flesh.. We only bring out facts.. just the facts mam.. just the facts... Why do you think this stock is hovering around $ 7 bucks anyways when other energy stocks are providing nice returns over the last 2 years..
I thought the same thing but Spot price is down 20%. Trading at $3.84 today. That's already down 7% from $ 4.10 released June numbers that valued the company. Cash flow will suffer as well. I'm just saying. I want good news but everything is just the opposite for so long. Where is the sunshine. Where is the blue skies?
If you believe they have significant hedges then why does thei latest Form 8-K released July 18th says the following, " For natural gas volumes, the average Henry Hub spot price of $4.10 per million British thermal units (“MMBTU”) used to calculate PV-10 at June 30, 2014 was up 12% from the average price of $3.67 per MMBTU used to calculate PV-10 at December 31, 2013. All prices were held constant throughout the estimated economic life of the properties."
Even with increased production, being offset by plunging spot NYMEX prices. 20% drop in last month or so. It's a vicious circle spiraling downward. Given GE induced production goals not being met. That's problem with no hedging and dry gas wells. All others moving into wet NGLs wells. A no brainer. But perhaps GE has no brains. Oh that's right, he has no NGLs wells or perhaps he coould have but went for the Utica instead of Marcellus wells possibility. No worries, Aussie land will bail him out right? Time clock is ticking, Anterro, RRC, Exxon, Chevron, Total, the list goes on are all drilling as well with hedges in place. Unless Feds allow exporting AND assuming GE can get on the list, there's no place to unload all this excess capacity. Given there are 1,000's of capped wells can only spell trouble for cash(less) tight companies. ONLY THE STRONG WILL SURVIVE and may end up picking up companies for pennies on the dollar. Perhaps that's what the new investors put their money in, they see the writing on the wall and will taking over at bargain prices.
you jealous.... holding on to a dream and stock worth (less) today than yesterday.. gotta go with the flow.. numb nut
So nice to know GE is making money in another company providing services to another company (MHR) he is CEO of both. Give me a break. Another Aubrey McClendon.. time will tell
I'm done bashing/keeping GE's toes to the fire. On the record, I've reopened a position. Re-entered with 2.5k shares @ $ 7.28. Still keeping most of my powder dry for now but this is a start, for me. Time will tell. Waiting to see what develops soon for adding more
PROJECT: Gulf Coast Pipeline Project (southern leg of Keystone XL)
OPERATOR: TransCanada Corp
ORIGIN/DESTINATION: 487-mile, 36-inch pipeline from Cushing, Oklahoma, to Nederland, Texas; 48-mile lateral pipeline to Houston.
CAPACITY: Initial capacity of 700,000 bpd, expandable to 830,000 bpd COST: $2.3 billion
STARTUP: Linefill began in December 2013, startup on Jan. 22, 2014.
PROJECT: Seaway pipeline reversal
OPERATOR: Enterprise Product Partners and Enbridge Inc
ORIGIN/DESTINATION: Cushing, Oklahoma, to Houston, Texas
COST: $300 million for initial reversal, $2 billion for final expansion with new parallel loop pipeline.
CAPACITY: 150,000 bpd initially, with first expansion to 400,000 bpd in January 2013 and further expansion to 850,000 bpd.
STARTUP: First crude began flowing from Cushing on May 19, 2012; First expansion started up Jan. 11, 2013; next expansion to start up by June 2014.
PROJECT: U.S. Mainline/Spearhead North Line 62 Expansion
ORIGIN/DESTINATION: Flanagan, Illinois to Griffith, Indiana
CAPACITY: 130,000 bpd to 235,000 bpd
COST: $500 million
PROJECT: Kinder Morgan Crude & Condensate (KMCC) pipeline and condensate
processing facility in Eagle Ford.
OPERATOR: Kinder Morgan Energy Partners
ORIGIN/DESTINATION: Eagle Ford shale formation to storage and a condensate splitter facility in Galena Park, Texas, with access to the Houston Ship Channel
CAPACITY: Pipeline can carry about 300,000 bpd of both Eagle Ford shale crude and condensate in 65 miles of newly built pipe and 113 miles of a converted natural gas pipeline. Splitter will process 100,000 bpd of Eagle Ford
condensate (expandable to 150,000) and provide 1.9 million barrels of storage capacity.
Pipeline expansions will connect its DeWitt County station to its Helena station in Karnes County (30 miles) an
Good question-a pipeline company could better answer your assertion. Chesapeake did same and in long run will cost them plenty to now have to pay the new owner to transport their gas. What is current daily transport? Is it a billion or projected? MHR is too small a company to create the proper infrastructure to be a pipeline company as well. The cost to maintain qualified personnel for all you mention for only 100 miles does not provide a lower cost per mile transport. Somebody like MMP with 12,000 miles could easily absorb but everything comes at a cost. If MMP can justify the ROI for transport, at spot prices what would net BTU be to MHR? I'm just saying.. slice all you want. It ain't worth a billion. I say closer to 250 million or 2.5 million per mile and that's being generous.
Less we forget leases have a specific time frame and unless you drill you lose your leases. Chesapeake had same problem in this area. That's one reason they had to start selling off leases to other companies before they became worthless. MHR is exhibiting a problem drilling on what they have so what do they need more at this point. Just tying up more cash flow.. It's a vicious circle and may end up being a downward spiral.. It is what it is.
Even we were to concede to your ludicrous valuations, company is worth around $ 1.50 billion after subtracting $ 1.2 billion in debt/liabilities. Fully diluted yields $ 7.50/per share .. that's all my friend. I do question valuing Eureka at $ 7 million per mile. Again that's ludicrous valuations. The market is spot on current valuations and actually may be a little high at this point. We'll have to see what the current cash flow burn rate was for last quarter. Wonder if GE will be booking legal fees for the Aussie land wild goose chase. I'm thinking around $ 25 million in legal fees unless he sand bags them for next quarter when the deal falls through. Last quarter MHR was burning through $ 1/million per day. GE MUST stem the flow of blood before it's too late. His proven reserves is what he needs to keep further leveraging the company and they didn't show up. Can't blow the independant appraisers/geologists now can you? SO who do you blame? I hope he's got adequate cash to be paying his bills on time or the likes of Halliburton and company will put them on the 3rd tier for showing up for work.
And how do you arrive at NAV of 9-12. 3/31/14 B/S indicates Book Value of $ 396 million.
There are 177 million shares o/s plus another 10% options (I own free of charge) excerised at $ 8.50 so fully diluted shares of 194 million (I'm not even including officers/employees options o/s). leaves books value of $ 1.98/share. You want to bump up book value by and $ 7 to $ 10/share is ludicrous. Net cash flow is only $ 5 share and I stand by that. Pickup copy of Shannon Pratt's "Valuing a Business" or similar. I wish I could jump on GE's bandwagon but he's not helping his own cause.
Using current prices and costs, future discounted cash flow is around $ 5/share. Indicates premium already built into the stock price. Further pressure will be exherted when release of quarterly income statement depending amount of loss from operations is reported. May start to get a bit dicey for GE. Indicates he can't grow the company fast enough to absorb cash flow issues and as well as operational issues/delays. Searching in Aussie land for diversion. GE talks a good game but time and time again he can't deliver. I see him for what he is. Great showmanship. Sorry Board
All those shares were given to them for free compliments of you the shareholders. Each received anywhere from $ 21,000 up to around $ 47,500 in new shares mainly for attending board meeting of last quarter. Sadly many people invest with their heart and not their heads. Everybody is well intentioned but many times misdirected. My powder is still dry waiting for the opportune time (if it occurs again) but right now for me the jury is out.. Will have to wait and see what develops and what is said (or not said) in next company release of financial/operational data. Believe you me if I see the time is right I will give my opinion. I hope it's coming but it's up to GE not me.
ETP building new pipleline & everybody is eurphoric. Well Antero, RRC & Am Energy are grabbing the capacity because they have producing wells & Pipeline co's only build extensions if there is an audience/need. Antero has 9 out of 10 best prolific wells & will continue because Antero & RRC will be drilling 5 to 10 new wells to MHR’s one. (they have both resources & rigs). That’s why MHR really needs to get their act together SOON because no other drillers are waiting on them. Next GE proudly announced that new couple wells that came on line going right into production at market i.e. spot prices That’s fine & dandy but GE needs to ‘hedge’ next couple years at a minimum. It’s called risk management. Back to pipelines and end consumers. You can’t hedge what you don’t produce. RRC & Antero etc are hedging and establishing long-term contracts to deliver to utilities companies, manufacturers, etc. Exxon, Chevron, are locking up long-term contracts. Signing agreements with pipelines to move product to users. So don’t be taken in about his ‘spot’ market sales. Next is MHR developing wet or dry gas wells? If they’re producing clean dry methane, everybody knows the money is in NGLs. Chesapeake has moved away from dry to wet gas wells. There are 1,000's of capped wells waiting for ample price to come on line. And finally (for now) I am taken aback when a CEO can say that we have “proven” reserves of 75 million barrel equivalents but I believe we have another 750 million unproven. When I first heard this I was astounded and induced to jump on the bandwagon and buy more shares in MHR.. But as time has gone on and I’ve seen one suspect statement after another, another deferment after another, another diversion after another, another sale of of ‘non core’ assets after another, the “we'll turn Eureka into a MLP”, the “we’ll sell the company” makes me wonder if we don’t have another SandRidge CEO Tom Ward or Aubrey McClendon?