cpe vs gst
cpe vs gst
I am guessing you don't have an absolute answer to this question, but why do you think cpe (and its preferred) have held up so well while other solid, small companies like gst have gotten clobbered?
Re: cpe vs gst
The Permian Basin is holding up much better than most basins. CPE gets more favorable treatment by the market because it operates in the same area as FANG and PE that the market loves.
Based on my forecast model, which you can download from the EPG website, CPE should generate enough cash flow from operations in 2016 to fund most of their $110 million capital program for 2016.
A lot of "experts" thought the STACK play may not extend up into Gastar's acreage, but their Meramec test well results sure look good. IMO the GST preferred stock is a "Screaming Buy".
Keep in mind that the Hunton sits under the best zones in STACK. See the bottom of page 8 of Tuesday's edition of The View From Houston.
Gastar has drilled and completed dozens of horizontal Hunton wells so they know exactly where the Oswego, Meramec, Osage and Woodford zones are and how thick they are. Newfield is getting great results in the Meramec just to the south and Chapparel Energy is getting great results in the Oswego to the north.
Based on my forecast model, which you can download from the EPG website, CPE should generate enough cash flow from operations in 2016 to fund most of their $110 million capital program for 2016.
A lot of "experts" thought the STACK play may not extend up into Gastar's acreage, but their Meramec test well results sure look good. IMO the GST preferred stock is a "Screaming Buy".
Keep in mind that the Hunton sits under the best zones in STACK. See the bottom of page 8 of Tuesday's edition of The View From Houston.
Gastar has drilled and completed dozens of horizontal Hunton wells so they know exactly where the Oswego, Meramec, Osage and Woodford zones are and how thick they are. Newfield is getting great results in the Meramec just to the south and Chapparel Energy is getting great results in the Oswego to the north.
Dan Steffens
Energy Prospectus Group
Energy Prospectus Group