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Richard Zeits

 
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  • 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
  • Cabot Oil & Gas: Constitution Pipeline Essential For Growth [View article]
    Andrew,

    Nice article. Here's my two cents to add to the topic:

    "Cabot Oil & Gas: Constitution Pipeline Schedule Slips Again; Stock Thesis Remains Intact" (Seeking Alpha, August 22, 2014)

    http://seekingalpha.co...
    Sep 2 04:04 PM | Likes Like |Link to Comment
  • EQT Corporation: The Midstream Advantage [View article]
    Juano,

    EQM is a midstream MLP sponsored by EQT. EQT owns 100% of the GP interest and 34% of the LP interests in EQM.

    Both EQT and EQM have slide presentations that you may find very helpful as overview materials. I strongly recommend.
    Aug 28 08:24 PM | Likes Like |Link to Comment
  • EQT Corporation: The Midstream Advantage [View article]
    745,

    I do not like price targets because they make a dynamic picture static. The way I prefer to think of it, I believe the upside looks stronger than the downside in this case. I have a specific scenario in mind - EQT is far along in its MLP process whereas several competitors are just getting started. I think MLPs are overpriced as an asset class and Marcellus MLPs in particular. However, EQT has the ability to reduce its exposure to the midstream while valuations are, arguably, at their peak. The proceeds can be channeled into the upstream. As a result, EQT (the parent) will have a massive cash resource to use towards organic growth and acquisitions. Some peers (Rice, Eclipse, to some degree Range and Antero) do not have the same financial strength.

    The full value of the upstream assets in the Marcellus will become obvious once the infrastructure is built. This may take another three-four years. EQT has a strong acreage base, financial resource and takeaway game plan to arrive at the finish line with ~3 Bcf/d of net production.
    Aug 28 11:27 AM | Likes Like |Link to Comment
  • Natural Gas: Is Henry Hub Obsolete As The National Price Benchmark? [View article]
    Tyler,

    I agree. And the only way of controlling basis is having more transportation capacity and interconnectivity.
    Aug 25 09:49 AM | 2 Likes Like |Link to Comment
  • Natural Gas: Is Henry Hub Obsolete As The National Price Benchmark? [View article]
    Pablomike,

    The real issue is for those companies that do not have access to Henry Hub-linked pricing (i.e., Marcellus and Utica areas).

    Even if they hedge on HH, they have difficulty protecting their price realizations. May I draw your attention to the Tennessee Zone 4 pricing in the Marcellus relative to HH. An interesting dynamic.
    Aug 25 09:08 AM | 1 Like Like |Link to Comment
  • Natural Gas: Is Henry Hub Obsolete As The National Price Benchmark? [View article]
    Pablomike,

    Their chart shows seasonality in excess capacity, with the situation improving during winter months. I would add to that, there will always be hubs where there is excess capacity while certain other pricing points will remain congested. The region actually needs some excess capacity DURING SUMMER season for the pricing to normalize.
    Aug 25 07:35 AM | 2 Likes Like |Link to Comment
  • EXCO Resources: Waiting For The Inflection Point [View article]
    CDM Capital,

    I indeed initially viewed positively EXCO's acquisitions which I discussed in my note "EXCO Resources: Will Masterful Deal Making Translate To High Long-Term Returns?" a year ago, the article that you are referring to.

    I still think that the Haynesville purchase was a consolidating transaction that made operating sense. The terms of the KKR partnership, however, made me rethink the concept of "masterful."
    Aug 22 05:30 PM | 1 Like Like |Link to Comment
  • Halcón Resources: The Second TMS Well Comes In Strong [View article]
    Californiansurfer,

    Radio silence? I thought HK was pretty vocal on the TMS couple of days ago in Denver, but I am delighted I could bring the news. :)
    Aug 22 11:51 AM | 6 Likes Like |Link to Comment
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