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The $265M Sanchez Energy (SN -1%) is paying Hess (HES -3.5%) for 43K acres of south Texas shale...

The $265M Sanchez Energy (SN -1%) is paying Hess (HES -3.5%) for 43K acres of south Texas shale is much lower than the $820M Tudor Pickering expected, which "highlights softness in non-core Eagle Ford" shale market. The firm says the deal does not bode well for Chesapeake (CHK -5.2%); applying the price Hess received implies a $600M value to CHK's land vs. Tudor's earlier estimate of $1.25B.
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Comments (3)
  • DeepValueLover
    , contributor
    Comments (9622) | Send Message
     
    Terrible news or Sandridge as well...
    19 Mar 2013, 02:59 PM Reply Like
  • iknow777
    , contributor
    Comments (32) | Send Message
     
    Our Government has done it before with land grabs hundreds of years ago, why not now by forcing the hands of various natural gas producers in order nto have the ability to dictate/participate/ take over natural gas production and sales in an extremely valuable market.. Stranger thing have happened- just a thought...
    19 Mar 2013, 04:47 PM Reply Like
  • HalStamford
    , contributor
    Comments (29) | Send Message
     
    I have no idea what you're talking about and I suspect you don't either.
    First about 75-85% of production is oil not gas and most importantly this is an arms length transaction between two corporations acting in their own perception of their best interest and has absolutely nothing to do with any government agency and certainly not one attempting to take over any land or assets.
    Finally, may i suggest you might want to buy as much Sandoz Energy (SN) as would be appropriate for your portfolio. I have no opinion regarding Hess
    19 Mar 2013, 05:14 PM Reply Like
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