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Bill Costello

Bill Costello
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  • Halcon Resources: Dilution Spree Is Going On, Fundamentals Starting To Weigh On The Stock [View article]
    It is hard to see what debt they may be paying down. At June 30, 2012 they had $219 million in cash and $242 million in debt with 136.1 million shares (up from 70 million in March of 2012). At June 30, 2013 with 440 million shares they have 3 million in cash and $2.7 billion in debt. They may have been drilling great wells and accumulating great acreage but they haven't been paying down debt.
    Aug 20, 2013. 12:48 PM | Likes Like |Link to Comment
  • Bakken Update: HK Misses But Reports Record Initial Production Rates [View article]
    I think North Dakota but not sure specifics.
    Aug 19, 2013. 07:12 PM | Likes Like |Link to Comment
  • My Top Junior Oil Stock In The Permian Basin 'Tight' Oil Play [View article]
    Not sure to be honest with you about the rules about the ownership
    Aug 19, 2013. 07:10 PM | Likes Like |Link to Comment
  • Bakken Update: HK Misses But Reports Record Initial Production Rates [View article]
    I was talking to someone today that mentioned HK was on the hunt for more Bakken acreage.
    Aug 15, 2013. 04:07 PM | Likes Like |Link to Comment
  • Bakken Update: Kodiak Has Great Quarter And A Production Ramp Into High Crude Pricing [View article]
    The only thing I would say is production should be inflecting. Many operators there are planning on big ramps in the second half and to the degree they are in many wells they should ride those coattails as well. I know it isn't the best catalyst but it might help.
    Aug 13, 2013. 07:40 PM | 2 Likes Like |Link to Comment
  • Bakken Update: Kodiak Has Great Quarter And A Production Ramp Into High Crude Pricing [View article]
    I wouldn't disagree with you about it being right but in practice not sure it could really be done. They used their model to acquire acreage but it was more important to get a lot and strategically they could buy very small chunks others didn't want. To operate they would need bigger chunkier acreage and would have to trade around a lot. Then hire a drilling team. It makes sense but I don't see it happening.
    Aug 13, 2013. 05:42 PM | 1 Like Like |Link to Comment
  • Bakken Update: Kodiak Has Great Quarter And A Production Ramp Into High Crude Pricing [View article]
    Exactly as we have multiple mutual funds and separately managed accounts. Thanks.
    Aug 12, 2013. 08:44 AM | 1 Like Like |Link to Comment
  • Bakken Update: Kodiak Has Great Quarter And A Production Ramp Into High Crude Pricing [View article]
    PDCE is owned in another product at our firm though we sold it out of small cap to buy SYRG.
    Aug 11, 2013. 02:11 PM | 1 Like Like |Link to Comment
  • Bakken Update: Kodiak Has Great Quarter And A Production Ramp Into High Crude Pricing [View article]
    All good questions. We bought some BCEI at $38.25 Friday. We also recently took our SLCA to a 2% position. We actually did on the last secondary then sold (down to 1%) just before this quarter as I thought consensus was too excited and we bought it back to 2% last week. That is a bit more trading than we usually do but SLCA is volatile. GPOR we did well with but sold too early in hindsight. It is really too big for my fund now though I cover it for the firm and another fund could buy it. I have it rated hold internally though I do like it. I had thought their guidance was too aggressive and I am not 100% sold on the Utica. I think it is good not great, not uniformly good though I think GPOR has the best position. The relationship with Wexford never feels good to me though it has lead them to many good opportunities. I would say at $45 I would be a buyer but at this level for same market cap I would buy OAS. PDCE we sold too early as well (Got too cute sold at $47 then it touched under $40 and didn't buy back then it flew) to buy SYRG and didn't want three stocks in the same play. Another product here owns it and I have a buy. I love the equity deal and I wish it sold off as I would love to own it again. I think they have the best Wattenberg position. So I might be a bit price sensitive but I would be a buyer.
    Aug 11, 2013. 01:16 PM | 1 Like Like |Link to Comment
  • Bakken Update: Kodiak Has Great Quarter And A Production Ramp Into High Crude Pricing [View article]
    It isn't the business model I would buy into. I agree it is statistically much cheap and I think over time it can work higher. It should there is nothing wrong about the assets except perhaps they are such a small piece of so many wells. I think I would rather concentrate with the best operators but I understand they had to accumulate as much land as possible. I actually liked the CEO when I had dinner with him a couple years back. I do think it is undervalued at these levels I just don't know what changes that. My comment was really just to tweak Jeep a bit. He is a great guy and I have now know him through this setting four years and he is a very good investor and a really smart guy. But like all of us not all the stocks always (read my comments on BAS out here as I rode it from $22 to $10) work out like we plan so it was just a bit more to tease him.
    Aug 11, 2013. 01:03 PM | 2 Likes Like |Link to Comment
  • Bakken Update: Kodiak Has Great Quarter And A Production Ramp Into High Crude Pricing [View article]
    They have floated that trial balloon in the past. I think they need to get a little further along. They don't generate the cash yet and are probably a couple years away. It probably makes sense at some point.
    Aug 11, 2013. 12:57 PM | 1 Like Like |Link to Comment
  • Bakken Update: Kodiak Has Great Quarter And A Production Ramp Into High Crude Pricing [View article]
    Or you can buy NOG under $13 again. It is only $2 lower than it was 3 years ago.
    Aug 9, 2013. 10:08 AM | 2 Likes Like |Link to Comment
  • Bakken Update: Kodiak Has Great Quarter And A Production Ramp Into High Crude Pricing [View article]
    You will probably have to pay $6.40 - 6.45
    Aug 9, 2013. 09:26 AM | 1 Like Like |Link to Comment
  • Bakken Update: Kodiak Has Great Quarter And A Production Ramp Into High Crude Pricing [View article]
    Depends on which costs you mean. I would put the missed costs into 4 buckets to talk about. D D & A first the jump surprised me but the explanation makes sense about taking out verticals but not enough horizontal adds. I would not expect it to go up from here. Second Operating costs had 2 (more or less) one time items that were 2/3 of variance. Third S G & A had $1.2 million in legal fees plus staffing for growth. I would expect those cost (on a unit basis) to fall in Q3 with flush production. The fourth bucket is just the general rise above trend not including the special items. That is okay if it is front end loaded for future growth but if it is just the beginning of continual upward pressure that wouldn't be a good thing.
    Aug 9, 2013. 09:09 AM | 2 Likes Like |Link to Comment
  • IPO Preview: Franks International N.V. [View article]
    Priced at $22
    Aug 8, 2013. 07:31 PM | Likes Like |Link to Comment
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