Seeking Alpha

BTMnyman

BTMnyman
Send Message
View as an RSS Feed
View BTMnyman's Comments BY TICKER:
Latest  |  Highest rated
  • Chesapeake Energy Is Finally Joining EOG Resources In Its Oil Success Story [View article]
    Totally agree with that... Shareholders should ask themselves why, as a shareholder, you should expect to be treated differently than Royalty owners. The royalty owners have been treated like a piggy bank- there to raid at will...
    Apr 30 01:15 PM | 1 Like Like |Link to Comment
  • Magnum Hunter: Bakken/Marcellus/Utica Junior Is Betting On Natural Gas And NGLs [View article]
    'MHR is still making excuses, which are probably legitimate. It claims the too cold winter weather has seriously impacted its work." I'm sure Enservco (OTC:ENSV) serves both there areas of operation...
    Apr 10 12:41 PM | Likes Like |Link to Comment
  • WSJ: Chesapeake accused of underpaying gas royalties [View news story]
    As a leaseholder... PA State law requires leaseholders to receive a minimum 12.5% in Royalties from any oil or gas produced "at the wellhead".

    Chesapeake wrote leases that guaranteed 12.5% from the wellhead- less their cost for transportations, taxes, processing etc. (contrary to PA law).

    The gas in Bradford county is "Dry Gas" and,as such, doesn't require much in the way of processing. it goes directly into the adjacent Marcellus TGP-Z4 Marcellus pipeline.

    So, with lease in hand, and regardless of these facts, Chesapeake deducts large percentages in processing and transportation costs. A simple example might help further: After Chesapeake deducts transportation and processing costs a leaseholder might end up with 7% in actual royalties instead of the 12.5% required by law. they think nothing of back-dating the deductions. In Early December they back dated to 2009-2010 additional deductions. The result was no royalties for three months as they deducted from current production.

    A few other head fakes employed:

    Divide & conquer: Chesapeake has several joint venture partners (Statoil, Anadarko, Mitsui and "Aubrey's" Larchmont) who send separate statements and checks (depending on their percentage of the well) to leaseholders. They too make large transportation and processing fees deductions and back-date deductions. So a landholder will get four separate checks from one well, with different prices paid for gas and different deductions for transportation and processing.

    Tax reporting: 1099's are reported separately (four separate 1099s CHK, STA, Anadarko, Mitsuti), without allowing for deductions. For example: say Chesapeake paid you 1k for the year. The 1099 you receive from them may say 1,4k in income (the actual amount plus the deductions they took out)

    In my opinion, These tactics are an obvious attempt to divide and conquer the leaseholders. So far it's worked very well...

    I have no position in any of the companies mentioned, nor do I intend to enter any position in the immediate future.
    Mar 13 12:02 PM | Likes Like |Link to Comment
  • Flotek Industries: A Recovering Play On Enhanced Oil Recovery [View article]
    Yes, I have researched it- Spend a few bucks and read the SPE research paper released in August SPE # 165705. Well worth the money...

    270 wells tested. From the findings bullet number 9... "The use of interfacial tension modifier fluid (CnF 2.0) and high conductivity proppants cooperate to significantly improve well performance"

    I'm long FTK...
    Oct 22 03:02 PM | 1 Like Like |Link to Comment
  • Flotek Industries: A Recovering Play On Enhanced Oil Recovery [View article]
    Not a word on their international flavor and fragrance division...
    Oct 21 10:02 AM | 1 Like Like |Link to Comment
COMMENTS STATS
5 Comments
3 Likes