Replies to This Discussion

Permalink Reply by North LA on April 24, 2012 at 8:38

Just got word that the RI is 22.5%

Permalink Reply by john ware on April 24, 2012 at 9:13

Were these offers from Triad ??

Permalink Reply by North LA on April 24, 2012 at 9:18

I'm not sure.

Permalink Reply by Sarah Randolph on April 24, 2012 at 8:00

If I had bad news to give someone I don't think I would use the word "astounding", so hopefully it will be good!  Glad to hear whatever reports are out there and appreciate the information.

Permalink Reply by North LA on April 24, 2012 at 9:19

I hope it's good also but I don't have any concrete info so stay level headed. Just glad these are positive rumors.

Permalink Reply by Sarah Randolph on April 24, 2012 at 9:24

Well, I haven't quit my day job but have bought stock!

Permalink Reply by VirginiaDore on April 24, 2012 at 16:10

I acquired a few shares myself a little while back, but the fact that the stock is now at about a 3-year low while all these positive rumors are running amuck doesn't seem to add up or bode well.  I have to think that the "smart money" boys (and girls) that presumably follow SWN know about the rumors as well as we do, and they aren't exactly piling on.  But like you I am keeping the faith and have my fingers crossed:  for capital gains and fat royalty checks all at the same time (do I sound greedy, or what?)!

Permalink Reply by Skip Peel - Mineral Consultant on April 24, 2012 at 16:47

If the LSBD prospect turns into an economic play for SWN there will be insufficient production to impact the price of the stock for two years.  It will take at least that long to build infrastructure and to drill enough wells.

Permalink Reply by Charles McDonald on April 25, 2012 at 13:06

True on the production part of the stock price equasion. However, stock price is typically forward looking based upon buyer demand to own the future profits of a company.. Based upon what I have read and heard on SWN's information releases and conference calls, with the broad spaced drilling of the planned wells, in addition to determining the right frac chemistry for the rock economics, etc., they will be able to more accurately calculate the reserves of the field. If they hit big on the proven reserve increases watch the stock price jump prior to actual production income.

Permalink Reply by Skip Peel - Mineral Consultant on April 25, 2012 at 14:15

Depends on how you define jump.  SWN is late to the game of adjusting their production mix.  Companies such as EOG that changed to a focus on liquids two and a half years ago are a much better investment (check out the stock price).  SWN does not exist in a vacuum.  Investors have a choice of many energy companies better positioned than SWN.  One liquids play does not sufficiently diversify an energy company.  SWN needs to have the LSBD and one or more of their New Venture prospects turn into a bona fide liquids play.

Permalink Reply by DavidR on April 25, 2012 at 15:13

They are late but they have reasonably good gas hedges in place and right now, that is exceptionally valuable.   If gas doesn't rebound over the next couple of years the risk is extremely high as those hedges expire.

Permalink Reply by Robert Carr Head on April 26, 2012 at 2:45

Skip do you think that this skewed nature of SWN's assets will motivate them to develop the play faster than a more balanced company would?

They are still doing some leasing in Union county.  Some of it is just tying up loose ends on smaller holdings.

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