Hmm. Folks not enthused aout Jones's scoop/stack acquisition and dilution.
Shares dumped @ 20% below the mkt at the opening today.
Jones
Re: Jones
and then there is this-----------
Jones Energy, Inc. Launches Public Offerings of Class A Common Stock and Series A Perpetual Convertible Preferred Stock
AUSTIN, Texas, Aug. 18, 2016 (GLOBE NEWSWIRE) -- Jones Energy, Inc. (JONE) (“Jones Energy” or the “Company”) announced today the launch of an underwritten public offering of 14,000,000 shares of its Class A common stock, subject to market conditions. The underwriters will have an option to purchase up to an additional 2,100,000 shares of Class A common stock from the Company.
In addition, the Company also announced today the launch of an underwritten public offering of 1,000,000 shares of its Series A Perpetual Convertible Preferred Stock at an issue price of $50 per share, subject to market conditions. The underwriters will have an option to purchase up to an additional 150,000 shares of Series A Perpetual Convertible Preferred Stock from the Company.
complete story here--
https://finance.yahoo.com/news/jones-en ... 00113.html
Jones Energy, Inc. Launches Public Offerings of Class A Common Stock and Series A Perpetual Convertible Preferred Stock
AUSTIN, Texas, Aug. 18, 2016 (GLOBE NEWSWIRE) -- Jones Energy, Inc. (JONE) (“Jones Energy” or the “Company”) announced today the launch of an underwritten public offering of 14,000,000 shares of its Class A common stock, subject to market conditions. The underwriters will have an option to purchase up to an additional 2,100,000 shares of Class A common stock from the Company.
In addition, the Company also announced today the launch of an underwritten public offering of 1,000,000 shares of its Series A Perpetual Convertible Preferred Stock at an issue price of $50 per share, subject to market conditions. The underwriters will have an option to purchase up to an additional 150,000 shares of Series A Perpetual Convertible Preferred Stock from the Company.
complete story here--
https://finance.yahoo.com/news/jones-en ... 00113.html
Re: Jones
AUSTIN, Texas, Aug. 18, 2016 (GLOBE NEWSWIRE) -- Jones Energy, Inc. (JONE) (“Jones Energy” or “the Company”) today announced the signing of a definitive purchase and sale agreement to acquire approximately 18,000 net acres primarily in southern Canadian and northern Grady Counties in Oklahoma for $136.5 million. The Company anticipates the transaction will close by the end of September, subject to completion of due diligence, satisfaction of customary closing conditions and obtaining certain consents.
Highlights
•Enhances Midcontinent position with entry into one of the most coveted resource plays in the U.S.
•Approximately 70% of acreage is operated with an average working interest of approximately 50%
•Majority of acreage in oil window, which drives compelling returns
•Implied acreage value of approximately $7,600 per net acre
•Recent well results on par with the best of the STACK/SCOOP
•Multiple target zones provide significant stacked pay potential
Jonny Jones, the Company’s Founder, Chairman, and CEO, commented, “This transformative transaction gives Jones Energy a scalable footprint in one of the most coveted resource plays in the U.S. We identified this area as a primary target for Jones over a year ago and are thrilled to be acquiring assets in the heart of the STACK/SCOOP play. The acreage we are acquiring is highly operated, which puts us in a solid position to create value through our best-in-class Midcontinent operations. We truly believe that our acreage has the best attributes of both the STACK and the SCOOP plays based on our in-depth geological analysis. Recent well results on our footprint are on par with the best in the play.” Mr. Jones went on to say, “This acquisition high-grades our Midcontinent position and significantly enhances the growth outlook for Jones Energy in 2016 and beyond.”
About Jones Energy
Jones Energy, Inc. is an independent oil and natural gas company engaged in the development and acquisition of oil and natural gas properties in the Anadarko and Arkoma basins of Texas and Oklahoma. Additional information about Jones Energy may be found on the Company’s website at: www.jonesenergy.com.
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The market does not like the dilution (going from 31,267,000 to 47,367,000 shares of class A common stock), but would the market rather they add a lot of debt. Common stockholder may not like the preferred being sold (pushing them down a notch).
Not enough details to evaluate the acquired assets, but let's assume it is a good package since they did extensive due diligence.
Just adding the additional shares and no additional production to my model, takes the valuation down to $6.27/share.
Cash flow from operations on-track to over $2.00/share, even with the higher share count.
Highlights
•Enhances Midcontinent position with entry into one of the most coveted resource plays in the U.S.
•Approximately 70% of acreage is operated with an average working interest of approximately 50%
•Majority of acreage in oil window, which drives compelling returns
•Implied acreage value of approximately $7,600 per net acre
•Recent well results on par with the best of the STACK/SCOOP
•Multiple target zones provide significant stacked pay potential
Jonny Jones, the Company’s Founder, Chairman, and CEO, commented, “This transformative transaction gives Jones Energy a scalable footprint in one of the most coveted resource plays in the U.S. We identified this area as a primary target for Jones over a year ago and are thrilled to be acquiring assets in the heart of the STACK/SCOOP play. The acreage we are acquiring is highly operated, which puts us in a solid position to create value through our best-in-class Midcontinent operations. We truly believe that our acreage has the best attributes of both the STACK and the SCOOP plays based on our in-depth geological analysis. Recent well results on our footprint are on par with the best in the play.” Mr. Jones went on to say, “This acquisition high-grades our Midcontinent position and significantly enhances the growth outlook for Jones Energy in 2016 and beyond.”
About Jones Energy
Jones Energy, Inc. is an independent oil and natural gas company engaged in the development and acquisition of oil and natural gas properties in the Anadarko and Arkoma basins of Texas and Oklahoma. Additional information about Jones Energy may be found on the Company’s website at: www.jonesenergy.com.
-------------------------
The market does not like the dilution (going from 31,267,000 to 47,367,000 shares of class A common stock), but would the market rather they add a lot of debt. Common stockholder may not like the preferred being sold (pushing them down a notch).
Not enough details to evaluate the acquired assets, but let's assume it is a good package since they did extensive due diligence.
Just adding the additional shares and no additional production to my model, takes the valuation down to $6.27/share.
Cash flow from operations on-track to over $2.00/share, even with the higher share count.
Dan Steffens
Energy Prospectus Group
Energy Prospectus Group
Re: Jones
Let's assume that Jones' management took a VERY HARD LOOK at a deal of this size. Go to the latest Newfield Exploration presentation (slide 6) and look at the map that shows how the Meramec and Woodford are spread across Canadian and Grady counties. Until we know where the acreage sits it is hard to guess how good it is, but again we need to assume that Jones' management aren't idiots. They have been working in Oklahoma for many years, so they should know the geology.
One fund manager can panic and dump several million shares at the open to cause a selloff like this. Others see the initial selloff on the news and assume something very bad is happening.
Impossible to know at this point.
One fund manager can panic and dump several million shares at the open to cause a selloff like this. Others see the initial selloff on the news and assume something very bad is happening.
Impossible to know at this point.
Dan Steffens
Energy Prospectus Group
Energy Prospectus Group
Re: Jones
http://s1.q4cdn.com/529546945/files/doc ... _18_16.pdf
The above presentation from Jones Energy provides a lot more info about the acquired property. At $7600/acre it sure looks like a deal compared to the purchase MRO made. After you have the chance to review it I'd appreciate your comments, Dan. Thanks.
The above presentation from Jones Energy provides a lot more info about the acquired property. At $7600/acre it sure looks like a deal compared to the purchase MRO made. After you have the chance to review it I'd appreciate your comments, Dan. Thanks.