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Richard Zeits

 
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  • Penn Virginia: The Correction Creates An Entry Point [View article]
    Georgekmarshall,

    It means "Exploration Expenses" line item for companies that elect to expense exploration wells as opposed to capitalizing them for accounting purposes.
    Aug 5 09:09 AM | Likes Like |Link to Comment
  • Rice Energy Acquires Chesapeake's Marcellus Package: Analysis [View article]
    Gas prices? Marcellus basis?
    Aug 5 09:06 AM | Likes Like |Link to Comment
  • Rice Energy Acquires Chesapeake's Marcellus Package: Analysis [View article]
    Galicianova,

    You haven't missed it, I hope to follow up after the earnings season is over.
    Aug 5 08:48 AM | Likes Like |Link to Comment
  • Penn Virginia: The Eagle Ford's Emerging Surprise Story [View article]
    Gtoz,

    I just posted a note with some thoughts on recent developments, it should be out for everyone to see tomorrow morning. I hope there will be interesting comments and opinions from readers.
    Aug 4 05:48 PM | Likes Like |Link to Comment
  • Kodiak Oil & Gas: To Sell Or Not To Sell? [View article]
    Rscam - very fair comment. For KOG fundamentals, may I refer you to my earlier note which is linked in the text. On the New WLL, will post a note soon.
    Aug 4 03:37 PM | 1 Like Like |Link to Comment
  • Cabot Oil & Gas: A Stranded Giant [View article]
    Always good to have a debate. We'll try to find a common denominator in the next round - I should post a new note, this thread is getting long. :)
    Aug 4 03:02 PM | 1 Like Like |Link to Comment
  • Cabot Oil & Gas: A Stranded Giant [View article]
    Dnpvd51,

    You are automatically assuming that COG's price realization will drop by an equal amount. Not obvious.

    More importantly - and I do not know how to convey my point - DD&A is historical cost that may not equal current cost. Cash taxes are not equal the GAAP provision for taxes. These two items would be different if you apply cash accounting.
    Aug 4 02:09 PM | 2 Likes Like |Link to Comment
  • Halcón Resources: Solid Second Quarter Driven By The Bakken [View article]
    Tiffting, I am not sure I understood your line items.
    Aug 3 01:15 PM | 1 Like Like |Link to Comment
  • Cabot Oil & Gas: A Stranded Giant [View article]
    Dnpvd51,

    I commented earlier: you are using historical Depletion cost. It is correct from GAAP accounting perspective, however it is backward-looking. I would use their actual current reserve replacement cost. It is not GAAP but it is a better measure of current "profitability."
    Aug 3 06:59 AM | 2 Likes Like |Link to Comment
  • Halcón Resources: Solid Second Quarter Driven By The Bakken [View article]
    Igmos00,

    In your comment I read a somewhat simplified interpretation of what the technical issue is (or, rather, issue are). It is difficult to cover this rather large topic in a comment, but I will likely touch upon it in a note that I hope to post after GDP's Q2 release this week. It may be a better forum to debate the topic.
    Aug 2 07:29 PM | 1 Like Like |Link to Comment
  • Halcón Resources: Solid Second Quarter Driven By The Bakken [View article]
    Hi Craig,

    This is a terrific comment, I could not agree more.
    Aug 2 06:52 PM | 2 Likes Like |Link to Comment
  • Cabot Oil & Gas: A Stranded Giant [View article]
    It's certainly not all of it. Big Marcellus operators typically maintain a marketing portfolio that provides access to a variety of pricing points. Obviously, there is some correlation to local benchmarks, but the mechanism is complex.

    There are many indications that July basis in Marcellus was generally weaker than in Q2. In Q2 COG posted an average discount to Nymex of $0.89. There is no question that Q3 will look ugly. The market should have figured this out already. But it would be a mistake to believe that investors will base their decisions solely on the current basis performance. These are stocks with multi-year growth profiles and massive reserves.
    Aug 2 06:24 PM | 2 Likes Like |Link to Comment
  • Cabot Oil & Gas: A Stranded Giant [View article]
    Dnpvd51,

    226 vs. 354, I believe you are reading a figure that is as of mid-2013.

    Even if nat gas trades under $2 at several Marcellus points, it does not mean that that is the price that COG is receiving.

    With regard to costs, I have to refer you to my calculation above - I still believe that the company's cash costs, including reserve replenishment and corporate G&A, are lower than $2.
    Aug 2 05:28 PM | 3 Likes Like |Link to Comment
  • Cabot Oil & Gas: A Stranded Giant [View article]
    Dnpvd51,
    This is just my opinion (which I believe is supported by the company's disclosure), but Cabot is actually making money even in a very challenging Marcellus environment like it saw in Q2.
    Aug 2 05:14 PM | 3 Likes Like |Link to Comment
  • EQT Corporation To Test Deep Utica Potential [View article]
    Pablomike,

    I agree. Perhaps 2 Marcellus wells for the same amount. However, what if?... What if dry Utica is better?
    Aug 1 03:35 PM | Likes Like |Link to Comment
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