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Richard Zeits

 
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  • Linn Energy: The Asset Swap Is A Positive, But The Value Gap Remains Wide [View article]
    hhmcdon,

    In my philosophy, whether to invest or not to invest and on what basis is every investor's personal decision. The article is hopefully some food for thought, but was certainly not meant to be an investment recommendation.

    With regard to current distribution yield, I would be careful. You may wish to look at the performance of SandRidge Mississippian Trust I and SandRidge Mississippian Trust II. Those vehicles have also traded at a terrific current yield. But what about unit price performance.
    Sep 21 08:57 PM | Likes Like |Link to Comment
  • Linn Energy: The Asset Swap Is A Positive, But The Value Gap Remains Wide [View article]
    Jerrywengler,

    The PV-10 metric discussed in the article relates to the value of proved oil & gas reserves. I am not sure what relevance it has for KMP or "a general stock of the DOW." KMP and LINN are in very different lines of business.
    Sep 21 08:50 PM | 1 Like Like |Link to Comment
  • Linn Energy: The Asset Swap Is A Positive, But The Value Gap Remains Wide [View article]
    Hermanbrut,

    Just to avoid any misunderstanding: the PV-10 number is really not "my" PV-10 number. It is provided by the company based on SEC guidelines.

    I am not sure though what you mean by "the present value of unproven reserves based on a probabiliy analysis." Sounds almost scientific.

    By the way, does the company have any spare cash to invest into unproven reserves in the next five years? I am not sure it does.
    Sep 21 08:46 PM | Likes Like |Link to Comment
  • Linn Energy: The Asset Swap Is A Positive, But The Value Gap Remains Wide [View article]
    Creese,

    DCF comes from operating cash flows. The PV-10 metric gives an idea of what future operating cash flows are expected to be. Of note, existing production tends to decline.
    Sep 21 08:36 PM | 1 Like Like |Link to Comment
  • Continental Resources: The Big Promise Of The Anadarko Basin [View article]
    Clarkaroo and Pablomike,

    Your comments are fair, Continental's acreage goes beyond the Anadarko Basin in the south. I guess, my point was that the opportunity set is much wider than just Woodford and is a consequence of being part of well known, prolific basin(s) that have excellent source rocks and stacked-pay structure.
    Sep 19 01:37 PM | 3 Likes Like |Link to Comment
  • Marcellus Differentials: Do Not Count On A Quick Recovery [View article]
    dnpvd51,

    + W.Va & Ohio + conventional gas + real time data
    Sep 18 10:12 PM | Likes Like |Link to Comment
  • Bonanza Creek: Premium Valuation Reflects Strong Operating Momentum In The Niobrara [View article]
    Jebeetem, thank you for pointing out. The ticker symbol is indeed incorrect, just submitted a correction.
    Sep 18 06:56 AM | Likes Like |Link to Comment
  • Encana: Is Another Major Acquisition On The Horizon? [View article]
    Understand777,

    XCO is a highly unlikely target for ECA, IMHO. XCO is the Haynesville, first and foremost. ECA has not been spending in the Haynesville lately, which may indicate that the play is "below ECA's corporate threshold." XCO's Eagle Ford is entangled in the KKR JV structure, which may reduce its appeal to potential acquirer (plus Tier 1 quality of the asset). XCO's valuation is still another issue.
    Sep 16 04:47 PM | Likes Like |Link to Comment
  • Encana: Is Another Major Acquisition On The Horizon? [View article]
    Ebeads,

    Stranger things have happened, but didn't they just sell some TMS acreage to HK?And does Encana need to add another two operating areas? Having said that, ECA certainly has enough cash to buy any midcap operator. A corporate transaction would be a most disappointing course of action though, IMHO.
    Sep 16 08:42 AM | Likes Like |Link to Comment
  • SandRidge Energy: Does The Announced Stock Repurchase Contradict The 'Grow Into Debt' Plan? [View article]
    TXOil,

    Thank you for sharing. 2.5x Net Debt to EBITDA? That sounds a little optimistic, I wonder if the are using the same ratio.

    We'll see at the end of the year.
    Sep 5 04:55 PM | 3 Likes Like |Link to Comment
  • SandRidge Energy: Does The Announced Stock Repurchase Contradict The 'Grow Into Debt' Plan? [View article]
    Adrian Theriault,

    "What has SD got to lose by announcing a buyback?"

    Credibility is a difficult-to-replace asset.
    Sep 5 02:48 PM | 6 Likes Like |Link to Comment
  • Shell's Deep Utica Discovery Opens A New Chapter For Northeast Gas [View article]
    Pablomike,

    The Bigfoot was a ~7,000-foot lateral with 40 frac stages.

    UPL's acreage was mostly non-op and UPL was unhappy with Shell's cost structure. I can imagine the cost on the evaluation wells with all the science involved. A difficult situation.
    Sep 4 10:42 AM | Likes Like |Link to Comment
  • Shell's Deep Utica Discovery Opens A New Chapter For Northeast Gas [View article]
    Intarz,

    Very valid points. Of note, several Utica wells in central PA have not been particularly impressive, although they were not in the dry gas window. The Utica is a very thick formation, though.
    Sep 4 10:08 AM | 1 Like Like |Link to Comment
  • Royal Dutch Shell: A U-Turn In The Shale Business [View article]
    Kruk,

    I don't know what the cost for these two specific wells was but suspect that these type of wells can probably be drilled under $10 million in full development mode. The Shelby Trough area in the Haynesville could be an analogue (with the sole significant difference that the Point Pleasant does not have H2S issues).
    Sep 3 02:32 PM | Likes Like |Link to Comment
  • Royal Dutch Shell: A U-Turn In The Shale Business [View article]
    Mike,

    I did indeed see the news. A terrific development. In fact I was writing an update on deep Utica - there are several similar tests currently underway in SW PA - but I was not aware that Shell was drilling their own test in the North.

    This may be a breakthrough as it expands the limits of Tier 1 acreage in PA. I am not convinced, though, that economics will be able to compete with Core of the Core in the Marcellus.

    Regards,

    Richard
    Sep 3 10:32 AM | 1 Like Like |Link to Comment
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