preferreds
Posted: Fri Dec 26, 2014 7:00 pm
Would you buy Gastar or Enerjex preferreds right now...or any other energy company pref for that matter?
The preferred stocks for GST, CPE and ENRJ should all be fine. I have listed them in order of safety. I consider GST preferred (Series A and Series B) as the safest just because they have the most production and 40% of their 2015 crude oil production is hedged at over $85/bbl.
EnerJex is a micro-cap with under 1,000 boepd day of production, compared to Gastar at 11,500 boepd (going to 15,000 boepd in 2015) and Callon at 7,400 boepd (going to 8,500 boepd in 2015). Callon has approximately 55% of their crude oil production hedged for the first two quarters of 2015. There are tables showing the hedges at the bottom of my forecast models for each company.
You can find my updated forecast models for all three under the Watch List tab.