Lonestar Resources Is A Binary Play

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About: Lonestar Resources US Inc. (LONE)
by: Daniel Jones
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Daniel Jones
Deep Value, value, contrarian, special situations
Summary

Lonestar Resources is a difficult company to understand, but within that challenge lies opportunity.

The company has tremendous upside potential, but it is not without meaningful risks as well.

The business's debt and preferred units makes this a very double-edged sword and investors should be cautious as a result.

One of the smaller oil and gas E&P (exploration and production) firms on the market today is Lonestar Resources (LONE). With a presence in the Eagle Ford, the company has some interesting acreage