A Close Look At SandRidge's Results In The Mississippian [View article]
I know they drilled a handful of wells in Garfield last year, but I haven't looked at the results. A cursory check shows similar to Grant, but it's a small sample size. It looks like they have a lot of leasehold there so I would expect them to get to it soon.
A Close Look At SandRidge's Results In The Mississippian [View article]
You're welcome. If he still intends to sell the Permian, my personal opinion is that he should be ousted. With that said, I would buy/sell the stock assuming he stays on.
The Emerging TMS: Vast Oil Potential For Several Natural Gas Weighted Companies [View article]
Today they might, but again there's only ever been ~20 wells completed in the TMS in history, so there's a lot for companies to learn and hopefully plenty of room for costs to come down. If this is as low as costs go, then the play might not work, but I doubt that's the case.
ConocoPhillips: Exploiting The Eagle Ford Shale [View article]
They've been drilling the best Eagle Ford wells in my opinion. The declines on some of their Karnes County wells resemble the Parshall field and Live Oak looks great too. Anyone know if they've started drilling Lavaca yet?
3 Potential Value Stocks In The Eagle Ford [View article]
If you're buying or holding GDP you're really betting on the TMS as that's going to be the major catalyst for the company moving forward. They absolutely need to find a JV partner for their 150k acres there as they don't have the liquidity to develop it on their own. Evidence of this is that S&P just downgraded their credit rating because the company hasn't been able to generate cash flow. I look at it like this: there's better options.
The "screw EOG" comment may not have come off the way I intended it to. What I was trying to say is that EOG is a fantastic company who gets a lot of coverage, let's look at a much less sexy company to see if we can find some value.
I agree that financing is an unfortunate distraction for some of these small caps, particularly KOG. It will be interesting to see how they manage their spending moving forward. If they believe in the long-term fundamentals of the price of oil they don't need to overextend themselves because the oil itself isn't going anywhere.
Value Stock Search: Whiting Petroleum [View article]
On the other side of the equation: If I did have a position in Whiting and I was telling you to buy them subsequently, couldn't that be mistaken as a conflict of interest?
My research and analysis should speak for itself. I'm not here to make decisions for you, I'm here to provide information and analysis. I don't run a hedge fund. I don't pump stocks. I look at various stocks for various reasons and write about them. Might I enter Whiting at some point? Sure. Do I plan to in the next 72 hours? No.
Putting Kodiak's Valuation Into Perspective [View article]
I don't disagree with what you've said, they're certainly not at the stage where they need to be spending within cash flows but they've been very dilutive (as many shares outstanding as EOG) and have issued a moderate amount of debt to get to this point. I know you can buy back shares and retire debt, but they're a long ways from being able to do that. KOG is still a buy for me at this valuation, but it's not without risks. People forget how cyclical oil prices can be, particularly when you consider the systemic risk in the market today.
The Bakken And The Mississippian Lime: A Comparison [View article]
Good point, there's definitely analysis to be done there. If you're curious, an easy way to get some preliminary data would be to dig through presentations of Lime companies and look at the upside price decks on their type curves.
Debt In The Oil And Gas Industry: How Much Is Too Much? [View article]
The purpose of this piece was to show that the dynamics of an industry in part dictates a company's capital structure (You can choose to disagree with me on this point, but have some facts to back up your argument). Because the oil and gas industry has characteristics of multiple industries, companies have different capital structure philosophies. I did mention at the end that because of this, there's not a "perfect capital structure" for all companies.
Most companies borrow to finance leasehold acquisitions in the oil and gas industry. SN has no debt because they are a start-up with very little production to borrow against.
There are certainly other ways you can look at debt in the oil and gas industry. If I was working in corporate finance for a company, I would create an index of similar sized companies and see how they are financing themselves. For this analysis, I purposely looked at a broad mix of companies in hopes of finding an industry average.
A Close Look At SandRidge's Results In The Mississippian [View article]
A Close Look At SandRidge's Results In The Mississippian [View article]
The Emerging TMS: Vast Oil Potential For Several Natural Gas Weighted Companies [View article]
ConocoPhillips: Exploiting The Eagle Ford Shale [View article]
ConocoPhillips: Exploiting The Eagle Ford Shale [View article]
ConocoPhillips: Exploiting The Eagle Ford Shale [View article]
3 Potential Value Stocks In The Eagle Ford [View article]
Seeing The Forest Through The Debt [View article]
I agree that financing is an unfortunate distraction for some of these small caps, particularly KOG. It will be interesting to see how they manage their spending moving forward. If they believe in the long-term fundamentals of the price of oil they don't need to overextend themselves because the oil itself isn't going anywhere.
Value Stock Search: Whiting Petroleum [View article]
Value Stock Search: Whiting Petroleum [View article]
My research and analysis should speak for itself. I'm not here to make decisions for you, I'm here to provide information and analysis. I don't run a hedge fund. I don't pump stocks. I look at various stocks for various reasons and write about them. Might I enter Whiting at some point? Sure. Do I plan to in the next 72 hours? No.
Putting Kodiak's Valuation Into Perspective [View article]
The Bakken And The Mississippian Lime: A Comparison [View article]
The Bakken And The Mississippian Lime: A Comparison [View article]
The Mississippi Lime: Reading Through Austex Results [View article]
Debt In The Oil And Gas Industry: How Much Is Too Much? [View article]
Most companies borrow to finance leasehold acquisitions in the oil and gas industry. SN has no debt because they are a start-up with very little production to borrow against.
There are certainly other ways you can look at debt in the oil and gas industry. If I was working in corporate finance for a company, I would create an index of similar sized companies and see how they are financing themselves. For this analysis, I purposely looked at a broad mix of companies in hopes of finding an industry average.
I do appreciate the feedback though, thanks guys.