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Michael Filloon

 
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  • Bakken Update: Frac Sand Pricing Could Go Parabolic In Q3 2014 [View article]
    DILA,

    Thanks, it has worked out well, hopefully it continues to run as we do currently own it.
    Aug 20 01:25 AM | Likes Like |Link to Comment
  • Bakken Update: Frac Sand Pricing Could Go Parabolic In Q3 2014 [View article]
    TVM,

    Thanks, although we think SLCA may have gotten a little ahead of itself in the short term, we believe that this will be a bigger story next year. We think SLCA could hit a $75 price target. This does include some estimations on our part that may or may not come to fruition, but we think we are just beginning to see how sand will be used in the future. We have already spoken about the benefits of its logistics and the additional demand coming on with pad development beginning in some of the bigger basins. The variable no one is talking about "yet" seems to be deep water shale plays like in the Gulf of Mexico. We don't know enough about it yet to confirm these will be all sand or ceramic fracs but we could see some fantastic demand from these types of wells in the near future. Still bullish but think we could get a better entry point as WTI pulls back.
    Aug 20 01:24 AM | Likes Like |Link to Comment
  • Bakken Update: Synergy's Q3 Is Good, But Q4 Will Be Much Better [View article]
    Bill,

    A little excitement is good for the soul. I would guess this one is both lucky and good.
    Aug 15 03:57 PM | Likes Like |Link to Comment
  • Bakken Update: Carrizo Continues To Outpace In The Eagle Ford And Ready To Sell In The Niobrara [View article]
    OandG Interest,

    Definitely made for a good day.
    Aug 5 01:16 AM | Likes Like |Link to Comment
  • Bakken Update: Frac Sand Pricing Could Go Parabolic In Q3 2014 [View article]
    We were very happy with SLCA's 2Q14 results. As expected company sales volumes increased nicely, with emphasis on oil and gas which was up 53% year over year and 13% sequentially. We also expected SLCA has logistical advantage over its competition, and sales via its transload network were 68% of volumes. Most importantly, its contribution margin for all grades increased to a record $28.68/ton. SLCA has been active signing new take or pay agreements, signing four new and one modified agreement in Q2. When I first highlighted the upside for SLCA, we found the business had significant upside as EOG Resources' (NYSE:EOG) new completion design highlighted the use of significantly more volumes of sand per foot of stimulated interval. EOG found that focusing the frac near the well bore opened up more rock, so in turn more proppant was needed to fill this void and allow the resource to continue to flow to a greater extent and over a greater period of time. Production continues to increase as SLCA has it just opened its state-of-the-art frac sand mine and plant near Utica, Illinois. This was on schedule, with first sales in July. Plans are for it to be shipping at capacity in the beginning of September. It also acquired Cadre Services. This will increase market share by expanding its footprint in the Permian. Production cost/ton were at a record low in Q2. Logistics were big part of this as SLCA has shipped over 60 unit trains year-to-date. Its railcar fleet of 4,250 cars at the end of Q2 is anticipated to grow to over 5,100 cars by the end of the year. SLCA may be one of the best ways to play oil and gas in 2014. The story may be intact and continue to grow volumes through year end as margins improve. The recent pullback may provide a buying opportunity. We have increased our FY14 estimates. For additional info, including valuation and price targets go to http://bit.ly/1si3hbl.
    Aug 3 02:07 PM | 1 Like Like |Link to Comment
  • Bakken Update: Basic Energy Continues To Excel, Levered To Fraccing [View article]
    D&I Investor,

    I would like to answer that one, but we reserve those types of questions for our Bakken Subscription. We answer all types of portfolio questions at Shaletrader.com
    Jul 31 11:43 AM | Likes Like |Link to Comment
  • Bakken Update: Carrizo Continues To Outpace In The Eagle Ford And Ready To Sell In The Niobrara [View article]
    OandGInterest,

    It is definitely an issue. We think its not a bad idea to stay away until we get some clarity. Its too bad, this is one of our favorite plays.
    Jul 30 04:26 PM | Likes Like |Link to Comment
  • Bakken Update: Basic Energy Continues To Excel, Levered To Fraccing [View article]
    DividendInvestor,

    Sure. ND is imposing flaring limits on all producers. This means any operator flaring more than a certain percentage of total gas production will be fined. This was a surprising call from a (my state) state that isn't real green when compared to others. I would guess this call has more to do with dollars and cents and not preserving resource. ND is also a very conservative state, and lets just say when I was born here in 1972, there is a little more money here than back then. ND is trying to maximize dollars, and the only way to do that is to get more gas to the plant. It also motivates operators to get creative, like the EOG site we just visited by Mandaree that was run totally on natural gas. When the site would use the natural gas you can see the gas flare lower. The current limits imposed are not hard to make for the bigger operators, but could be difficult on the smaller ones. Something is going to have to give, as ND is not Texas and does not have the infrastructure in place. So we either need to add that infrastructure, or wait for it. Since we cannot get it all done yesterday, some operators will have to slow down development. Operators with midstream are going to have a big advantage.
    Jul 29 01:11 AM | Likes Like |Link to Comment
  • BakkenUpdate: Rex Energy Blows By Q1 Analyst Estimates On Its Way To $30/Share [View article]
    Thanks for adding that Bill. Nice to get some good news.
    Jul 29 12:24 AM | Likes Like |Link to Comment
  • Bakken Update: Basic Energy Continues To Excel, Levered To Fraccing [View article]
    iridium18,

    I don't think it will affect much. The 74% flaring limit by the end of this year shouldn't be too hard to hit for most. The 77% by 1Q15 shouldn't be too tough either. The difficult one may be 85% by 1Q16, but that is a long way off.
    Jul 27 08:12 PM | Likes Like |Link to Comment
  • Bakken Update: Basic Energy Continues To Excel, Levered To Fraccing [View article]
    Gtoz,

    Sorry you feel that way, but I go where the conversation takes me. I would guess if I only responded to questions that suited me, I probably wouldn't have responded to this question. Have a great day.
    Jul 27 05:51 PM | 2 Likes Like |Link to Comment
  • Bakken Update: Basic Energy Continues To Excel, Levered To Fraccing [View article]
    bikerron,

    I agree. They had me drinking the Kool-Aid for a little while, but it would take a lot to get me back in.

    shaletrader.com
    Jul 24 06:50 PM | 1 Like Like |Link to Comment
  • Bakken Update: Basic Energy Continues To Excel, Levered To Fraccing [View article]
    Dave18,

    I like EOX, and it has pulled back nicely from its highs. I don't own it and we don't own it in our fund, but if I was looking at buying it I would hold off for earnings to see what type of a quarter they have. The last quarter wasn't too bad but they have had some problems with costs. They have done a nice job on production so the bottom line would be more of a worry for me. If I owned it here, I wouldn't sell into earnings unless I was up quite a bit and in that case would take some profits. If you are looking for more info on the name, check out our site
    shaletrader.com
    Jul 24 06:47 PM | 1 Like Like |Link to Comment
  • Bakken Update: Carrizo Continues To Outpace In The Eagle Ford And Ready To Sell In The Niobrara [View article]
    Fossilfuel,

    Very good points as usual! Thanks
    I am not a big fan of CRZO selling the Niobrara, but there was some talk of it and the Marcellus. I agree with all of your points on the Utica, as its had some nice wells in that part of the condensate window, but Ethane rejection is still a problem, as it Nat Gas pricing at that hub.
    Jul 24 06:42 PM | Likes Like |Link to Comment
  • Bakken Update: Carrizo Continues To Outpace In The Eagle Ford And Ready To Sell In The Niobrara [View article]
    g8tr,

    I would say yes to the Niobrara. There are a few big players and I think they would be willing to buy up names like BCEI, SYRG, and PDCE.
    Jul 24 12:18 AM | Likes Like |Link to Comment
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