Energy Prospectus

The years ago DVN andWPX executed a merger of equals. The day before the deal was announced DVN closed at $8.82. Today the combined company is at $50.48. Rick Mongrief said it was an equity deal because companies were undervalued. While there is no guarantee that the new PR will perform like DVN,but...

Approximately three years ago DVN and WPX entered into a merger of equals somewhat similar to ESTE and PR, but not a merger of equals. The key is that both deals are all stock deals. At the time DVN said both company’s stocks were so cheap that everybody wanted to retain the upside. The same rationa...

Natural gas has pulled back considerably since the fire at the Freeport Plant. Could the lack of the Freeport buy order for 2bcf/d for natural gas be the cause for this weakness. In addition Cove Point is down for three weeks. If 2 bcf/d comes out of the market and Freeport buys this excess, shouldn...

Missing from the MGY report is an appraisal of management. Shortly after their SPAC conversion I bought the stock on the strength of the management team assembled by TPG. Steve Crazen and Christopher Stavros were President and CFO at OXY prior to joining MGY.At the time of the conversion the Karnes ...

SBOW had very positive comments about the Eagleford play. EOG and SM seem to be be the leaders there for both oil and gas. there are many private companies which will be acquired. I think SBOW is the smallest of the public companies. Probably worth comparing the metrics on the Sundance merger with t...

Liberty Energy (LBRT)made a very interesting presentation. This is one of the top freacing (#3) companies. The CEO is very outspoken about all the global warming wokers. He has written a book about our energy problems and can be ordered from Liberty's website.

The Rice brothers have a fabulous record in the energy patch. Their father is Dan Rice. He has been managing energy investment for 40 or 50 years with Loomis Sayles, State Street and now run a Boston hedge fund. A great and effective team.

The five NG companies in the Sweet 16 are up 67.98 % as of Friday. The three gassers in the Elite eight are up 72.1% ( AR, EQT, CTRA}.
The Elite Eight are up 47.3%. Not a bad year and energy is still only 4% of the S&P 500.

Dan,

I am curious about the historic relationship between RRC's market price and RRC's PV10. Today RRC indicated $60 is a reasonable PV10 number. Has RRC historically traded above or below PV!0 during the $3 environment? Should that $60 number be relevant in today's environment?

Jay Allison {CRK} spoke at EnercomDallas on April 6. It can be viewed on the Enercom website and is worth watching. About the same time the stock started to move and began trading 5 million shares per day.

Dan,
The average gain for the Sweet 16 stocks this year is 51.7%. Only EQT is trading above your fair value. ESTE has the most upside by a wide margin. Comstock has done great in the last few weeks ,but its fair value is $22 not $32. At $22 it still has 50% upside w

Hi Dan in your ESTE review there were 8 Peers on a couple of the tables around Page 10. I am interested in the identities of these 8 companies that ESTE views as similar companies. Any help with this will be appreciated. Maybe another great investment similar to ESTE. Is Frank Lodinski still active ...

Crk Will always trade at a discount because of Jerry Jones. He is a jerk. Wonder where it would trade if Rick Montgreif (MGY) was running it.

Dan your MGY write up is on target. MGY will grow production and reduce stock for the foreseeable future. In future reports I think you should have a section on the great quality of MGY's management. I bought the stock initially because of Steve Chazen. Imagin the former CEO of OXY becoming the CEO ...

Highlights from the July issue of the Oil and Gas Investor *IHS Markit expects Permian oil production to double by 2025 *IHS also expectsPermian gas production to double by late 2019 *Bernstein expects Permian gas production to triple by 2025 *Bernstein says 6 new gas pipelines will be needed by 202...

The May issue of the Oil and Gas Investor featured four articles on Permian Basin water issues and solutions. Water is the hottest topic in the US oil and gas markets today. The water challenge is becoming more urgent while being the fastest growing and most misunderstood. According to Ross Craft, C...

One of the best kept secrets in today's energy market is buried in the Permian Basin. No investment firms or focus groups follow this company. All its revenues are generated from the Permian Basin, primarily from Loving , Culberson and Reeves Counties. Despite the unknown nature of this company it o...

Credit Suisse raised its SM target from $27 to $31 on Jan 10
Raymond James raised its target from $29 to $31 on Jan 11

Dan, Mark Papa has been particularly positive about his Lea Co. acreage. He considers it the best acreage in his portfolio. During one of his conference calls he spoke of Monster wells drilled in Lea Co. CDEV has one rig drilling on their property and expects to drill four or five wells during the q...

Dan, It seems to me that Wall Street doesn't believe that the gas market is tightening.I think there is a great opportunity for our group to define the dynamics of the gas market. We need to get away from weather comments about cold or warm weather in the Northeast. We need to get a better understan...