He believes HLX has suffered from investor disappointment following its acquisition of Remington Oil & Gas. The company’s original investor base gave up. The acquisition originally appeared to be a bust after the first to Remington holes drilled were dry. Since then they have hit 14 successful holes in 2006-2007.
Prospects:
40% additional proved reserves to 600bcf. Estimated $1Billion in EBITDA-for 2007, approximately$3.50 per share. Estimated $1.4Billion in EBITDA-for 2008, approximately $5.00 per share. Estimated $7.00 per share earnings for 2009. While high the company’s $1billion in capex is leading to a solid IRR. Possible but not necessary share repurchase. No commodity hedging. </blockquote>
Eye on Energy: Specialized Technology Stock Picks [View article]
<blockquote><... Einhorn- Greenlight Capital</strong>
Long- HLX-Helix Energy Solutions.
He believes HLX has suffered from investor disappointment following its acquisition of Remington Oil & Gas. The company’s original investor base gave up. The acquisition originally appeared to be a bust after the first to Remington holes drilled were dry. Since then they have hit 14 successful holes in 2006-2007.
Prospects:
40% additional proved reserves to 600bcf.
Estimated $1Billion in EBITDA-for 2007, approximately$3.50 per share.
Estimated $1.4Billion in EBITDA-for 2008, approximately $5.00 per share.
Estimated $7.00 per share earnings for 2009.
While high the company’s $1billion in capex is leading to a solid IRR.
Possible but not necessary share repurchase.
No commodity hedging.
</blockquote>