preferreds
preferreds
The market is up today. Oil is up today. GST and other preferreds are down again. Dan, can you make any sense of this, because it seems bizarre to me?
Re: preferreds
The common stocks move more in line with commodity prices. All three of the preferred stocks in our High Yield Income Portfolio look fine to me.
Dan Steffens
Energy Prospectus Group
Energy Prospectus Group
Re: preferreds
today has been most unusual---crude up 3.5+% and equities mixed. it tells me buyers are tired of dead cat bounces and are waiting for a more definitive signal on crude. like maybe a rise above 48 or even closer to 49.
anyone else want to wade in on todays trading? would like to hear others ideas.
anyone else want to wade in on todays trading? would like to hear others ideas.
Re: preferreds
If this week's storage report shows another draw, we could see a big move up in crude oil prices. However, trying to understand the daily moves in share prices can drive you crazy.
Just keep in mind that crude oil supply/demand is tighten much faster than Wall Street believes. In all previous cycles, when the speculators go long the price can move up quickly.
http://finance.yahoo.com/news/oil-price ... 48760.html
Just keep in mind that crude oil supply/demand is tighten much faster than Wall Street believes. In all previous cycles, when the speculators go long the price can move up quickly.
http://finance.yahoo.com/news/oil-price ... 48760.html
Dan Steffens
Energy Prospectus Group
Energy Prospectus Group
Re: preferreds
Since (roughly) the beginning of July, Callon Preferred is down 15%. GST Preferred is down 35%. Same market, similar (?) fundamentals, why the big difference?
Re: preferreds
The GST preferred are trading like they are going out of business. I don't know what's up with them either. I keep reading here that they are "rock solid" sol have held on to my OW position. Someone (s lot of someones, in fact) seem not to share this opinion. I keep waiting for them to find some support somewhere but it never comes. I guess I have no choice but to hold b/c selling a position of size would know it down another couple bucks. I am holding. By the way Callon is a better company with less debt, so it didn't get hit hard.
Re: preferreds
In my opinion, the disaster that is MHR and their preferreds is also sending shockwaves through companies that may be viewed, rightly or wrongly (in this case wrongly) as somewhat similar to MHR. So my theory is that GST is being sucked into MHR's whirlpool to some extent.
Re: preferreds
i also am holding my GST +b it drops about a buck on 10-15, 000 shares traded but seems to have some support at 15 give or take
you are at the price now where panic sets in, fear etc right now i am not buying anymore till i see the results of their stack well
if good will add as all of their properties put together could be sold for more than the currrent debt
if they were in serious danger in 2015 or 16, the bank would not have ponied up again
and Russ is right , that if you don't pay the preferreds, all hell breaks loose on the common
you are at the price now where panic sets in, fear etc right now i am not buying anymore till i see the results of their stack well
if good will add as all of their properties put together could be sold for more than the currrent debt
if they were in serious danger in 2015 or 16, the bank would not have ponied up again
and Russ is right , that if you don't pay the preferreds, all hell breaks loose on the common
Re: preferreds
All of the reasons sound good, but this is a stock that is trading like GST is going out of business. Will everyone continue to love GST-P at $10?
Re: preferreds
Liquidity (from Gastar's August 9 press release)
At June 30, 2015, we had approximately $9.4 million in available cash and cash equivalents and $105.0 million of availability under our $200.0 million revolving credit facility borrowing base, or total available liquidity of $114.4 million. Subsequent to the end of the second quarter 2015, we completed the sale of non-core Oklahoma assets for net proceeds of $46.1 million resulting in pro forma total liquidity of $160.5 million. We expect to fund our remaining 2015 capital program of approximately $41.0 million through existing cash balances, internally generated cash flow from operating activities, borrowings under the revolving credit facility, property sales and possible capital markets transactions, or some combination thereof.
HOUSTON, Aug. 31, 2015 /PRNewswire/ -- Gastar Exploration Inc. (NYSE MKT: GST) ("Gastar") today announced that it has completed its second scheduled borrowing base redetermination of its revolving credit facility for 2015 and, as a result, the borrowing base has been reaffirmed by the lending participants at $200.0 million. Currently, Gastar has drawn $65.0 million under its revolving credit facility, resulting in $135.0 million of unused borrowing capacity. The next scheduled borrowing base redetermination is to occur by May 1, 2016.
Michael A. Gerlich, Gastar's Chief Financial Officer, commented, "Our successful drilling activity in 2015 combined with our strong hedging program allowed us to maintain our borrowing base in a difficult commodity price environment. The available borrowings under this credit facility, along with our cash on hand and internally generated cash flow, will give Gastar more than adequate liquidity to fund our recently expanded 2015 capital expenditures budget and provide for a strong liquidity position as we enter 2016."
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There is zero risk of GST going bankrupty anytime soon and I see no reason they will not continue paying dividends on the preferred stock. Keep this in mind: Each time a bank approves a credit facility they have independent reservoir engineering firms do a detailed review of their client's assets. Gastar's drilling program in Oklahoma is going to add a lot more proven reserves that were not included in the previous report. At our luncheon, Russ Porter told me that 12 new Hunton wells will be include in the 12-31-2015 reserve report.
I think the name of the company causes it to trade in lock step with natural gas prices, even though the majority of its revenues are from liquids sales.
At June 30, 2015, we had approximately $9.4 million in available cash and cash equivalents and $105.0 million of availability under our $200.0 million revolving credit facility borrowing base, or total available liquidity of $114.4 million. Subsequent to the end of the second quarter 2015, we completed the sale of non-core Oklahoma assets for net proceeds of $46.1 million resulting in pro forma total liquidity of $160.5 million. We expect to fund our remaining 2015 capital program of approximately $41.0 million through existing cash balances, internally generated cash flow from operating activities, borrowings under the revolving credit facility, property sales and possible capital markets transactions, or some combination thereof.
HOUSTON, Aug. 31, 2015 /PRNewswire/ -- Gastar Exploration Inc. (NYSE MKT: GST) ("Gastar") today announced that it has completed its second scheduled borrowing base redetermination of its revolving credit facility for 2015 and, as a result, the borrowing base has been reaffirmed by the lending participants at $200.0 million. Currently, Gastar has drawn $65.0 million under its revolving credit facility, resulting in $135.0 million of unused borrowing capacity. The next scheduled borrowing base redetermination is to occur by May 1, 2016.
Michael A. Gerlich, Gastar's Chief Financial Officer, commented, "Our successful drilling activity in 2015 combined with our strong hedging program allowed us to maintain our borrowing base in a difficult commodity price environment. The available borrowings under this credit facility, along with our cash on hand and internally generated cash flow, will give Gastar more than adequate liquidity to fund our recently expanded 2015 capital expenditures budget and provide for a strong liquidity position as we enter 2016."
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There is zero risk of GST going bankrupty anytime soon and I see no reason they will not continue paying dividends on the preferred stock. Keep this in mind: Each time a bank approves a credit facility they have independent reservoir engineering firms do a detailed review of their client's assets. Gastar's drilling program in Oklahoma is going to add a lot more proven reserves that were not included in the previous report. At our luncheon, Russ Porter told me that 12 new Hunton wells will be include in the 12-31-2015 reserve report.
I think the name of the company causes it to trade in lock step with natural gas prices, even though the majority of its revenues are from liquids sales.
Dan Steffens
Energy Prospectus Group
Energy Prospectus Group
Re: preferreds
somewhere here the GST preferreds have to be the buy of the year
Re: preferreds
30,000 shares for sale on GST pref at 13.50 guess when it gets to 10 i add
Re: preferreds
Among the two GST preferreds (A and B), is there a preference re their dividends? In otherwords, must GST suspend/not pay all of one before it may suspend/reduce any of the other?