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Impact of HK Buyout?
Posted: Thu Jul 14, 2011 7:03 pm
by bearcatbob
Dan et al, what are your thoughts on the impact of the buyout of HK on our favorites. It would seem nat gas in the ground just got revalued big time.
Bob
Re: Impact of HK Buyout?
Posted: Thu Jul 14, 2011 8:50 pm
by dan_s
If will definitely draw a lot of attention to the other Haynesville and Eagle Ford companies. Keep an eye on Sweet 16 member PXP, which has a major stake in the Haynesville.
Re: Impact of HK Buyout?
Posted: Thu Jul 14, 2011 8:52 pm
by dan_s
ROSE should be another winner.
Re: Impact of HK Buyout?
Posted: Thu Jul 14, 2011 9:02 pm
by dan_s
This deal makes micro-cap Cubic Energy (QBC) more interesting to me.
Re: Impact of HK Buyout?
Posted: Fri Jul 15, 2011 7:38 am
by dan_s
What this tells me is that the BHP engineers see a lot more gas reserves in HK than the most recent 3rd party reserve report shows. The reserve reports shown in annual reports tend to be very conservative and are usually adjusted upward over time.
NEW YORK (AP) -- Shares of Petrohawk Energy Corp. surged nearly 64 percent Friday in premarket trading after BHP Billiton Ltd. announced it would buy the company for $12.1 billion in cash.
BHP, an Australian mining giant, said it would buy Petrohawk for $38.75 per share. The total value of the deal is $15.1 billion, including Petrohawk's debt.
Shares of Petrohawk shot up $14.97, or 64 percent, to $38.46 in premarket trading.
Analysts for Citigroup and KeyBanc Capital Markets set a "Hold" rating for Petrohawk after the announcement. Citi estimated that BHP paid roughly $4.25 per 1,000 cubic feet for Petrohawk's proven reserves of natural gas equivalent. KeyBanc put the value slightly higher at $4.45 per 1,000 cubic feet.
Re: Impact of HK Buyout?
Posted: Sat Jul 16, 2011 10:23 am
by ghrcap
"Petrohawk Buyout Puts Bakken and Eagle Ford Mid-Caps in Play"
http://seekingalpha.com/article/279650- ... ps-in-play
Re: Impact of HK Buyout?
Posted: Sat Jul 16, 2011 12:21 pm
by dan_s
This was e-mailed to me by a VP of UBS Financial Services:
The way I see this, it's a lesson for the US of what's ahead if we stay on this economic path we're now following.
Since QE II, we have seen -20% of the purchasing power of the USD, with another -10% to go, most likely.
That means an Aussie company can benefit about 30% on a deal on the weakness of the usd alone, a significant
advantage over US competitors. Can someone please explain the basic economics to Washington.
We have never seen so much destruction of capital, jobs, and standard of living in our lifetime.