Josh Young
Hedge fund manager, energy, value, special situations

An Eagle Ford Oil Company Trading For Less Than 1/3 Of Its Proved Reserve Value

Eagle Ford focused companies such as EOG (NYSE:EOG), Marathon (NYSE:MRO), Sanchez (NYSE:SN) and Matador (NYSE:MTDR) have achieved excellent well results and tighter spacing. The following slide from EOG's presentation shows improving results and reduced days to drill, indicating improving economics:

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And the following slide shows the affect of downspacing:

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This trend allows more highly economic wells to be drilled on their acreage, increasing the value of their assets. Not surprisingly, their stocks have traded up and they trade at a premium to their booked proved reserve values.

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However, one Eagle Ford focused company trades at less than one third of its recently updated...

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