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PostRock - Another High Quality Acquisition

|Includes:PostRock Energy Corporation (PSTR)

Yesterday morning PostRock (NASDAQ:PSTR) announced that they had completed another acquisition to add to their central Oklahoma foot print.

This acquisition was smaller than the last one, coming in at $750,000 in cash, but it's another step towards building a larger, more stable company.

On PostRock's numbers they paid $7 per barrel of proved reserves. They expect the acquired assets to generate project IRRs in excess of 100%. A small deal but a strong one.

You can see the more complete PostRock thesis here.

Disclosure: I am long PSTR.

Stocks: PSTR