GST
Posted: Fri Mar 14, 2014 8:57 pm
Gastar Exploration (GST): An updated Net Income & Cash Flow Forecast model has been posted under the Watch List Tab.
Gastar reported a 4th quarter loss because of several non-cash charges, ignore that stuff. Cash flow per share and production came in above my forecast. The company did reduce their production guidance for 2014 to 9.7 to 11.0 Mboe/d (40% to 44% liquids). Using the midpoint of their guidance, production will be up 16.8% in 2014.
Higher natural gas and NGL prices will give 2014 revenues a nice boost.
My Fair Value Estimate came down slightly to $7.15/share.
They have more than enough cash flow from operations and liquidity to fund their $185 million capex program and pay dividends on the pfd stock.
I think the shares traded down today because of the headline loss, profit taking and investors were hoping for more info on their Oklahoma Hunton Limestone Play.
PS: The company hosting our luncheon in Houston on March 28 (Torchlight Resources) will be talking about the Hunton Limestone Play. Click on the Calendar Tab to register.
Gastar reported a 4th quarter loss because of several non-cash charges, ignore that stuff. Cash flow per share and production came in above my forecast. The company did reduce their production guidance for 2014 to 9.7 to 11.0 Mboe/d (40% to 44% liquids). Using the midpoint of their guidance, production will be up 16.8% in 2014.
Higher natural gas and NGL prices will give 2014 revenues a nice boost.
My Fair Value Estimate came down slightly to $7.15/share.
They have more than enough cash flow from operations and liquidity to fund their $185 million capex program and pay dividends on the pfd stock.
I think the shares traded down today because of the headline loss, profit taking and investors were hoping for more info on their Oklahoma Hunton Limestone Play.
PS: The company hosting our luncheon in Houston on March 28 (Torchlight Resources) will be talking about the Hunton Limestone Play. Click on the Calendar Tab to register.