GST preferreds
GST preferreds
Dan, you rated the Gastar preferreds "rock solid" a few weeks ago. Do you still feel that way? I saw that the CFO Michael Gerlich bought a couple batches of B recently, including last Friday. I spoke to him last week and he is confident in them, what do you think?
Re: GST preferreds
Yes, I do think their pfd stock is rock solid (i.e. - they will have no problem paying the dividends)
Here's why:
> Production mix in 2015: 15,000 boepd (52% natural gas, 28% crude oil and 20% NGLs) < 48% YOY production growth
> 40% of 2015 crude oil is hedged at over $85/bbl
> 30% of 2015 natural gas is hedged at $4.12/mcf
> Natural gas price and NGL prices are holding up much better than crude oil prices because they trade on regional markets
> Balance sheet is in good shape, thanks to equity offering that raised over $100 million.
> $173 million budget for 2015 is totally funded.
You can find more details on my forecast model, which is under the Watch List Tab.
Here's why:
> Production mix in 2015: 15,000 boepd (52% natural gas, 28% crude oil and 20% NGLs) < 48% YOY production growth
> 40% of 2015 crude oil is hedged at over $85/bbl
> 30% of 2015 natural gas is hedged at $4.12/mcf
> Natural gas price and NGL prices are holding up much better than crude oil prices because they trade on regional markets
> Balance sheet is in good shape, thanks to equity offering that raised over $100 million.
> $173 million budget for 2015 is totally funded.
You can find more details on my forecast model, which is under the Watch List Tab.
Dan Steffens
Energy Prospectus Group
Energy Prospectus Group