GST_PA for High Yield

[dan_s]

I think GST_PA pfd stock is a "Screaming Buy" near $22/share. - Dan

HOUSTON, Nov. 1, 2013 /PRNewswire/ -- Gastar Exploration Ltd. (NYSE MKT: GST) ("Gastar") announced today that Gastar Exploration USA, Inc., the wholly-owned subsidiary of Gastar, has declared a monthly cash dividend on its 8.625% Series A Preferred Stock ("Series A Preferred Stock") for November 2013.

The dividend on the Series A Preferred Stock is payable on December 2, 2013 to holders of record at the close of business on November 15, 2013. The November 2013 dividend payment will be an annualized 8.625% per share, which is equivalent to $0.179688 per share, based on the $25.00 per share liquidation preference of the Series A Preferred Stock. The Series A Preferred Stock is currently listed on the NYSE MKT and trades under the ticker symbol "GST.PRA."

About Gastar Exploration
Gastar Exploration Ltd. is an independent energy company engaged in the exploration, development and production of oil, natural gas, condensate and natural gas liquids in the United States. Gastar's principal business activities include the identification, acquisition, and subsequent exploration and development of oil and natural gas properties with an emphasis on unconventional reserves such as shale resource plays. Gastar is currently pursuing the development of liquids-rich natural gas in the Marcellus Shale in West Virginia and is also in the early stages of exploring and developing the Hunton Limestone horizontal oil play in Oklahoma. For more information, visit Gastar's website at www.gastar.com.

[bellwj]

I thought the same thing, but must admit I am baffled by the decision to issue new preferred stock at a rate of 10+%. Maybe the cash flow issues aren't totally resolved with the Cubic sale.

[dan_s]

By issuing Series B pfd they actually reduced the risk for those of us that hold Series A, which includes me.

Series A is ahead of Series B on liquidation, although I have no fear that will happen.

At $22/share, the annual dividend yield on GST_PA is over 9.8%. That is a darn good yield on a security that has very low risk.

[dan_s]

HOUSTON, Oct. 29, 2013 /PRNewswire/ -- Gastar Exploration Ltd. (NYSE MKT: GST) announced today that it will release its third quarter 2013 results on Monday, November 4, 2013 after the market closes. In conjunction with the release, Gastar has scheduled a conference call for 9:30 a.m. Eastern Time (8:30 a.m. Central Time) on Tuesday, November 5. Investors may participate in the call either by phone or audio webcast.

I will update my forecast model for GST this evening.