Replies to This Discussion

Permalink Reply by Skip Peel - Mineral Consultant on April 6, 2009 at 7:48

There seems to be more than one nay-sayer out there. Mr. Schaefer questions HS company financial reports.

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Permalink Reply by essay on April 6, 2009 at 10:54

that is a little confusing. the article cites sources claiming that 'the haynesville won't work" yet concludes that the situation is bullish for ng prices going forward, making the argument of current pricing moot. or am i missing something here?

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Permalink Reply by Skip Peel - Mineral Consultant on April 6, 2009 at 11:56

By now we should all employ a healthy dose of skepticism when listening to the spin imparted to quarterly corporate reports designed to impress Wall Street and capital credit sources. With the possible exception of CHK (because of their PXP Carry and hedge position) and a handful of conservative energy companies with relatively low debt, the majority of the E&P companies in the HS Play are not making a profit at $3.75 to $4.25/mcf gas. I do not have an accounting background. Nor am I experienced in deciphering corporate balance sheets. After the site professionals picked apart Arthur Berman's assessment of the play from the production end of the equation, I thought it might be instructive to discuss the financial end. I hope to attract some additional comments on the subject but for the time being Jim Krow has stated a break even number that seems reasonably accurate from where I sit. If the play requires $7 gas for the majority of E&Ps to break even, how much longer can any substantive level of development continue at the prevailing price range. I am aware that the spot price doesn't tell the whole story so I would hope that those who regularly make that point will help out by going into some depth in explaining pricing and cash flow. When I look at my list of operators filing HA unit orders, I get the feeling that a large number are not capable of doing much beyond getting the Office of Conservation to approve their applications.

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Permalink Reply by Bobi Carr ("parker") on April 6, 2009 at 12:21

Jim,

Is there an average lenghth of time that is the STANDARD that companies look for in drilling wells?
1 year? 2 years?

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Permalink Reply by sesport on April 6, 2009 at 11:54

First quarter "09 just ended, didn't it? Shouldn't quarterly financials be out soon?

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Permalink Reply by Skip Peel - Mineral Consultant on April 6, 2009 at 12:06

sesport. I am beginning to see a few announcements of upcoming corporate reports. Most energy companies did not release their '08 yearly and fourth quarter reports until 8 to 10 weeks following. As there is no binding requirement for reporting that I am aware of, it seems that those with good news move expeditiously to state such while those with little of substance to tout take their time.

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Permalink Reply by sesport on April 6, 2009 at 12:22

Skip - Is there no deadline for filing with SEC? Or IRS? ha, ha

Thanks :0)

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Permalink Reply by Skip Peel - Mineral Consultant on April 6, 2009 at 12:31

sesport. I assume there is a deadline for SEC filings. And those are available on-line but make me cross eyed. I like the quarterly report/conference call transcripts. Besides being more layman friendly, the Q and A portion can be revealing. For those not familiar with these reports, it is instructive to read the "forward looking statement" disclaimer also. It's at the end where it is hoped it will be overlooked. Kinda like the side affects of some medications. Or the disclaimer that Keith now includes at the bottom of each discussion page. See below. LOL!

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Permalink Reply by sesport on April 6, 2009 at 12:55

Skip - Yeah, I've seen the fine print below. LOL Seems it gets a little longer every day, too. :0)

I agree about quarterlies being more user-friendly, have also looked at SEC filings (which might beat SONRIS on trying to navigate the labyrinth if one doesn't use it regularly). Just thought the information might be posted there sooner.

I've been cross-eyed for quite awhile now from all my "digging' LOL

Thanks for sharing :0)

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Permalink Reply by sesport on April 6, 2009 at 14:51

Skip - This is from SEC and dated March 31, '09 and mentions a financial statement near the bottom. Also some other interesting information. With e-filings for everything these days, I'm wondering if it's possible that the report is already filed?

Medications have side effects! lol

:0)

http://www.sec.gov/Archives/edgar/data/895126/000089512609000058/ch...

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Permalink Reply by sesport on April 6, 2009 at 15:15

JK - I know that was the 8K, but this was at the bottom, second to last page. Which form would it be?

Section 9 – Financial Statements and Exhibits


Item 9.01 Financial Statements and Exhibits

Thanks - :0)

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Permalink Reply by sesport on April 6, 2009 at 15:31

Technology ... speed of light! lol I'm still curious as to what those financials are. Anyone?

Thanks - :0)

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