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.