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No_Escape

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  • Contango Oil & Gas and Crimson Exploration Enter Into Merger Agreement [View article]
    Surprised $CXPO was ok with doing a 100% stock deal. My guess is that Oaktree prompted this....
    Apr 30 08:36 AM | Likes Like |Link to Comment
  • Sanchez Energy Buys Great Assets From Hess On The Cheap [View article]
    Had a good feeling that $CXPO was a no-brainer!
    Apr 30 08:02 AM | Likes Like |Link to Comment
  • Sanchez Energy Buys Great Assets From Hess On The Cheap [View article]
    At the moment I like Rosetta and SN. Crimson looks inexpensive considering they just announced solid Woodbine results... I expect the stock to move up 20%-30% over the next few weeks... Might be a solid short term trading opportunity.
    Apr 3 10:20 AM | 1 Like Like |Link to Comment
  • Sanchez Energy Buys Great Assets From Hess On The Cheap [View article]
    Good question. First, it is important to note that achieving consistent drilling results in the Eagle Ford (specifically in Madison, Grimes, Brazos and Leon counties) has proven extremely difficult - regardless of the size, sophistication and capitalization of the companies operating in the play. In my view, the management teams that have executed better than others include EOG and Woodbine Acquisition Corp. With regard to SN, I think the leadership/mgmt team comes across very confidently in terms of communicating their ability to grow the company and achieve scale. With regard to improving drilling and completion results, I think the company will eventually figure it out and when they do I would expect the value of the enterprise to increase substantially. It's more of a question of timing - how long and how much capital will it take for the company to refine its prowess as an operator.
    Apr 2 05:30 AM | 2 Likes Like |Link to Comment
  • Sanchez Energy Buys Great Assets From Hess On The Cheap [View article]
    Spoke to SN management last week and it was noted that the last five Alexander Ranch wells (which were part of the package acquired from Hess) achieved PV-10 valuation estimates ranging from $8mm to $10mm per well (net capex). Those figures were cited from Ryder Scott's third party independent reserve report. Those are monster PV-10 values, both on a relative and absolute basis.... SN estimates that the Alexander Ranch has 25 remaining drilling locations (that SN plans to develop)... Those remaining locations yet to be drilled could potentially generate $225mm of PV-10 (assuming an average per well PV-10 of $9mm).

    The equity may have quite a bit of upside - assuming SN mgmt can achieve similar drilling economics across the remaining Alexander Ranch acreage as the most recently completed (pre-Hess acquisition) wells have indicated.
    Apr 2 05:16 AM | 1 Like Like |Link to Comment
  • Sanchez Energy Buys Great Assets From Hess On The Cheap [View article]
    Nice try. It may look like they negotiated a great purchase price - but I'm not convinced the deal is accretive to the equity. They acquired flush production. Until SN can perform in line with the guidance it communicates to the market, I'm just not convinced that the equity offers compelling upside. I need to see much more consistent well performance over the next few quarters.... This company could still end up turning into a big fat donut (zero).
    Mar 21 05:34 PM | 1 Like Like |Link to Comment
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