Gastar Exploration misses by $0.03, beats on revenue

• Gastar Exploration (NYSEMKT:GST): Q4 EPS of $0.02 misses by $0.03.
• Revenue of $61.45M (+130.0% Y/Y) beats by $22.99M.
• Press Release

Comments

[Doug Eames]

The preferred GST-A pays monthly dividends of 0.1797 (roughly 9.8% ROI). Good enough for me to buy some more down here at $22.05.

Am I wrong?

[31October]

Preferreds are nice. The A series is callable at any time, but the B preferreds are not callable until November 2018.

[Doug Eames]

In that case, what with one's being guaranteed a $25 call price, why are the B shares, callable after Nov 2018, at $24.45 and the A shares which can be called at any time down at $21.77? Let them call the A's - I'm satisfied with a 14.8% return anytime...

[David L. Powell]

There is no $25 guarantee - the issue at hand for all of the small E&P's with excessive debt is payment suspension or default. These Pfds are "perpetual" - they don't ever have to be called - and certainly none of the issuers are in any hurry to call them back. A much more interesting question is why is GST/pA trading so strong vs. GST/pB? Why bother to buy the A's when the B's are trading under par with higher yield? Also interesting (and fantastic) to see the strength in GST common lately with little corresponding movements in the PFds.

[tdswim]

Agreed.

[kruk]

Your kidding, right. Including revenue from Hedges, they have 34 cents per share in earnings and at 45 dollar oil will do 34-35 cents this quarter. Everyone else is losing money who cannot afford hedges, so why penalize this company for good management. P/E Ratio is now about 6-7.

[Nowshirtlz]

So kruk, Do you buy more here.

[alcat24]

the good ole boys took care of themselves, getting free options.