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at MarketWatch.com (Dec 6, 2013)
at CNBC.com (Nov 22, 2011)
at MarketWatch.com (May 18, 2010)
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Dominion Resources Black Warrior Trust Conservatively Overvalued By 50%
- Dominion Resources Black Warrior Trust will announce their quarterly distribution on November 19th, and may disappoint on production.
- DOM is a gas trust in decline, and is currently approaching the end of a 25-year life cycle.
- DOM's reserves at current gas prices imply a trust value significantly below the present market price.
- It is likely DOM will announce further production cuts due to well shutdowns.
Dominion Resources Black Warrior Trust (DOM): Unit Holder And Operator Interests Diverge
- New filing of communication between SEC and the Trustee.
- Only 369 of DOM's 500 wells profitable to drill for the unit holder.
- Only 50 of DOM's wells profitable to drill for the operator.
- Limited Energy Trust trading over 4x its value, the most overvalued energy trust.
- Next year's 5 and 7.5 put options offer tremendous risk reward profile.
- Several catalysts until expiration.
Dominion Resources Black Warrior Trust Grossly Overvalued - 75% Downside, 90% Of Wells May Be Losing Money
- DOM’s production levels are declining and the trust is likely to close in 4-5 years.
- Wells are being shut and a vast majority of wells may be losing money.
- DOM’s own 2014 reserve report suggests a fair value of $2.64; 75% lower than Monday’s opening price.
- Separate analysis of production and pricing suggests that, even under highly optimistic assumptions, DOM is 36% overpriced.
- Put options appear very attractively priced.
There are no Transcripts on DOM.
Tue, Sep. 30, 12:45 PM
Wed, Jun. 18, 12:45 PM
Wed, Jun. 18, 11:54 AM
- "DOM's wells are in their twilight years and Walter Energy has begun the process of abandoning them," writes The Forensic Accountant in an SA Pro article released from embargo this morning.
- The company's own reserve report suggests the trust may have a lifetime of just 4-5 years, and this report combined with the article author's own analysis points to more than a 75% downside in the stock.
- DOM -29.8%
Tue, Jun. 17, 12:50 PM
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Aug. 29, 2012, 10:24 AMWhen the grasping for yield goes bad: BP Prudhoe Bay Royalty Trust (BPT -5.9%) adds to recent losses, now off 27% in 2 weeks. The entire royalty trust sector has been shaken of late thanks to payout cuts at several (HGT, SJT, DOM), and the idea prices for these popular income plays have gotten far ahead of what they could ever pay out. | 24 Comments
DOM vs. ETF Alternatives
Dominion Resources Black Warrior Trust is a grantor trust, which acquires & holds certain overriding royalty interests burdening proved natural gas properties located in the Pottsville coal formation of the Black Warrior Basin, Tuscaloosa County, Alabama.
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