Warren Resources: Hidden Value Of Coal-Bed Methane Assets Will Cause Shares To Double By 2015
- Warren Resources has considerable reserves upside in its Wyoming coal-bed methane asset base.
- The company drilled 27 CBM wells in 2013; production will ramp up on these wells through 2015.
- The company acquired midstream assets from Anadarko in 2013 that will lower LOE by ~$0.70 per Mcf.
- Increases in production, reserves, and earnings will push stock price up 50% in 2014 and another 50% in 2015 (2015 PT= $10.50/share).