Montage Resources: Too Many Buffalo At The Same Waterhole

|
About: Montage Resources Corporation (MR)
by: Long Player
This article is exclusive for subscribers.
Long Player
Long/short equity, value, special situations, contrarian
Summary

This formerly natural gas producer now has significant oil production in a basin not known for oil production.

The "bankruptcy discount" clearly ran amok with this company.

New management clearly is running a far more financially conservative ship.

There is plenty of liquids rich acreage to keep the company busy for years. Stacked plays provide speculative upside to that scenario.

Enterprise value is dirt cheap. All that is needed for a better valuation is for management to continue doing what it is doing and wait for market recognition.

One of the problems with any commodity industry is that too many companies often have the same solution to a common problem. In the process of solving one problem, they create another problem. Too many