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From: stealth555/22/2012 2:31:44 PM
1 Recommendation   of 178675
 
did anyone get into PCX below $2? traded almost 60% down to 1.36 and now 2.50 down 26% cut it in half...this post announcement

Patriot Coal announced that it entered into a commitment letter for a new revolving credit facility and new term loan facility for a total of $625 mln

Co announced that it entered into a commitment letter for a new revolving credit facility and new term loan facility for a total of $625 mln from Citigroup Global Markets (C), Barclays Bank (BCS) and Natixis, New York Branch. PCX is continuing to work with these lenders to strengthen its finances, including the replacement of its current credit facilities well before certain of its debt obligations become due in March 2013. PCX has engaged The Blackstone Group (BX) and continues to work with Davis Polk & Wardwell LLP, its long-standing counsel, to achieve an optimal financing package.

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From: CommanderCricket5/22/2012 3:44:17 PM
   of 178675
 
This sucks! At least IOC is still green (again)...


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To: CommanderCricket who wrote (168835)5/22/2012 3:45:12 PM
From: Keith J   of 178675
 
Any idea who (or where) PCX's key customer that went under is?

KJ

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From: Eric5/22/2012 3:57:10 PM
   of 178675
 
Story at Bloomberg today:

Keystone XL Pipeline Will Raise U.S. Gasoline Prices, Group Says

TransCanada Corp. (TRP)
’s proposed pipeline to carry crude from the oil sands of Canada to the U.S. Gulf Coast would increase gasoline prices, according to a report from an environmental group that opposes the project.

The Keystone XL pipeline would divert crude oil from the U.S. Midwest to refineries along the Gulf Coast geared to producing diesel fuel for export, the Natural Resources Defense Council said in a report today. That will decrease the amount of gasoline produced for U.S. consumers and raise production costs, making the fuel more expensive, according to Anthony Swift, author of the report and an attorney with the environmental group.

Oils Sands of Canada



The world's largest known reservoir of heavy crude oil is in the Athabasca Oil Sands, Alberta, Canada, and the oil is extracted by surface mining. TransCanada proposed a pipeline to carry the crude to the U.S. Gulf Coast. Photographer: Alan Gignoux/LatitudeStock


President Barack Obama rejected the project in January saying that more environmental study is needed. The NRDC findings contradict a report last year from IHS CERA, which provides business advice and analysis to energy companies, that said the pipeline would help lower fuel prices.

“This requires President Obama and his administration and the Congress to take a real look at the impact of tar sands to the environment and not have to worry about the political issue of gas prices,” Swift said on a conference call with reporters.

The original project, estimated to cost $7.6 billion, would’ve expanded TransCanada’s existing Keystone pipeline to carry as much as 830,000 barrels a day from Canada’s oil sands and North Dakota’s Bakken Shale along a 1,661-mile (2,672-kilometer) path to Gulf Coast refineries. The NRDC and other environmental groups oppose the expansion of Canadian oil sands production, which they say creates more greenhouse gases than conventional crude.

Project Split

Following Obama’s denial, TransCanada split the project and reapplied for separate segments from the Canadian border to Steele City, Nebraska, and from Cushing, Oklahoma, to Texas refineries on the Gulf Coast. The segments would be connected by existing pipeline.

The U.S. State Department has jurisdiction over the section that crosses the international border.

“Yes, it does pull up the Midwest crude price because it equalizes the market, but on the other hand it introduces additional supply to an already fairly saturated region,” Sander Cohan, a global transportation fuels analyst and principal with Energy Security Analysis Inc. in Wakefield, Massachusetts, said in an interview. “It might have a small impact.”

Friends of the Earth, a Washington-based environmental group, has said the Keystone XL pipeline will increase air pollution and the amount of greenhouse gases associated with the production of crude from the oil-sands region. Crude from the oil sands is 5 percent to 15 percent more carbon intensive than the average crude used in the U.S., according to IHS CERA.

API Job Estimate

The American Petroleum Institute, the Washington-based group that represents more than 470 oil and natural gas companies, said the project will add 20,000 U.S. jobs and lower dependence on oil from the Middle East.

“The Keystone XL tar sands pipeline is not a solution to rising gas prices,” according to today’s report. “By decreasing the supply of gasoline in the United States and increasing the price refineries pay to produce it, Keystone XL will add to America’s pain at the pump.”

The U.S. imports 8 million to 9 million barrels of oil a day, according to Shawn Howard, a spokesman for Calgary-based TransCanada.

“To somehow suggest that helping offset current imports from Mexico and Venezuela with this Canadian and American crude is going to drive prices up, because what we’re doing is helping replace some of the current feedstock, doesn’t make sense,”Howard said in an interview.

To contact the reporter on this story: Jim Efstathiou Jr. in New York at jefstathiou@bloomberg.net

bloomberg.com 

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From: kollmhn5/22/2012 4:19:52 PM
9 Recommendations   of 178675
 
I just received this e-mail from a friend. Memorial Day is just around the corner so maybe it's not really OT.








----- Forwarded Message -----
From: AN AIRLINE PILOT






----- He writes: My lead flight attendant came to me and said, "We have an H.R. on this flight." (H.R. Stands for human remains.) "Are they military?" I asked.

'Yes', she said.

'Is there an escort?' I asked.

'Yes, I already assigned him a seat'.

'Would you please tell him to come to the flight deck. You can board him early,'I said.

A short while later, a young army sergeant entered the flight deck. He was the image of the perfectly dressed soldier. He introduced himself and I asked him about his soldier. The escorts of these fallen soldiers talk about them as if they are still alive and still with us.

'My soldier is on his way back to Virginia ,' he said. He proceeded to answer my questions, but offered no words.

I asked him if there was anything I could do for him and he said no. I told him that he had the toughest job in the military and that I appreciated the work that he does for the families of our fallen soldiers. The first officer and I got up out of our seats to shake his hand. He left the flight deck to find his seat.

We completed our preflight checks, pushed back and performed an uneventful departure. About 30 minutes into our flight I received a call from the lead flight attendant in the cabin. 'I just found out the family of the soldier we are carrying, is on board', she said. She then proceeded to tell me that the father, mother, wife and 2-year old daughter were escorting their son, husband, and father home. The family was upset because they were unable to see the container that the soldier was in before we left. We were on our way to a major hub at which the family was going to wait four hours for the connecting flight home to Virginia .

The father of the soldier told the flight attendant that knowing his son was below him in the cargo compartment and being unable to see him was too much for him and the family to bear. He had asked the flight attendant if there was anything that could be done to allow them to see him upon our arrival. The family wanted to be outside by the cargo door to watch the soldier being taken off the airplane. I could hear the desperation in the flight attendants voice when she asked me if there was anything I could do. 'I'm on it', I said. I told her that I would get back to her.

Airborne communication with my company normally occurs in the form of e-mail like messages. I decided to bypass this system and contact my flight dispatcher directly on a Secondary radio. There is a radio operator in the operations control center who connects you to the telephone of the dispatcher. I was in direct contact with the dispatcher. I explained the situation I had on board with the family and what it was the family wanted. He said he understood and that he would get back to me.

Two hours went by and I had not heard from the dispatcher. We were going to get busy soon and I needed to know what to tell the family. I sent a text message asking for an update. I saved the return message from the dispatcher and the following is the text:

'Captain, sorry it has taken so long to get back to you. There is policy on this now and I had to check on a few things. Upon your arrival a dedicated escort team will meet the aircraft. The team will escort the family to the ramp and plane side. A van will be used to load the remains with a secondary van for the family. The family will be taken to their departure area and escorted into the terminal where the remains can be seen on the ramp. It is a private area for the family only. When the connecting aircraft arrives, the family will be escorted onto the ramp and plane side to watch the remains being loaded f or the final leg home. Captain, most of us here in flight control are veterans.. Please pass our condolences on to the family. Thanks.'


I sent a message back telling flight control thanks for a good job. I printed out the message and gave it to the lead flight attendant to pass on to the father. The lead flight attendant was very thankful and told me, 'You have no idea how much this will mean to them.'

Things started getting busy for the descent, approach and landing. After landing, we cleared the runway and taxied to the ramp area. The ramp is huge with 15 gates on either side of the alleyway. It is always a busy area with aircraft maneuvering every which way to enter and exit. When we entered the ramp and checked in with the ramp controller, we were told that all traffic was being held for us.

'There is a team in place to meet the air- craft', we were told. It looked like it was all coming together, then I realized that once we turned the seat belt sign off, everyone would stand up at once and delay the family from getting off the airplane. As we approached our gate, I asked the copilot to tell the ramp controller we were going to stop short of the gate to make an announcement to the passengers. He did that and the ramp controller said, 'Take your time.'

I stopped the aircraft and set the parking brake. I pushed the public
address button and said, 'Ladies and gentleman, this is your Captain
speaking. I have stopped short of our gate to make a special announcement. We have a passenger on board who deserves our honor and respect. His Name is Private XXXXXX, a soldier who recently lost his life. Private XXXXXX is under your feet in the cargo hold. Escorting him today is Army Sergeant XXXXXXX. Also, on board are his father, mother, wife, and daughter. Your entire flight crew is asking for all passengers to remain in their seats to allow the family to exit the aircraft first. Thank you.'

We continued the turn to the gate, came to a stop and started our shutdown procedures. A couple of minutes later I opened the cockpit door. I found the two forward flight attendants crying,
something you just do not see. I was told that after we came to a stop, every passenger on the aircraft stayed in their seats, waiting for the family to exit the aircraft.

When the family got up and gathered their things, a passenger slowly started to clap his hands. Moments later more passengers joined in and soon the entire aircraft was clapping.


Words of 'God Bless You', I'm sorry, thank you, be proud, and other kind words were uttered to the family as they made their way down the aisle and out of the airplane.

They were escorted down to the ramp to finally be with their loved one.

Many of the passengers disembarking thanked me for the announcement I had made. They were just words, I told them, I could say them over and over again, but nothing I say will bring back that brave soldier.

I respectfully ask that all of you reflect on this event and the sacrifices that millions of our men and women have made to ensure our freedom and safety in these United States of AMERICA

Foot note:

I know everyone who has served their country who reads this will have tears in their eyes, including me.

Prayer chain for our Military. Don't break it!

Please send this on after a short prayer for our service men and women.

Don't break it!

They die for me and mine and you and yours and deserve our honor and respect.

'Lord, hold our troops in your loving hands. Protect them as they protect us. Bless them and their families for the selfless acts they perform for us in our time of need. Amen'



Prayer Request:

When you receive this, please stop for a moment and say a prayer for our troops around the world. There is nothing attached. Just send this to people in your address book. Do not let it stop with you. Of all the gifts you could give a Marine, Soldier, Sailor, Airman, & others deployed in harm's way, prayer is the very best one.

















GOD BLESS YOU!!!


























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From: sm1th5/22/2012 5:08:44 PM
   of 178675
 
HGT Hugoton Royalty Trust dropped 34% today. I didn't see any news to justify that. Anyone know why?

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To: sm1th who wrote (168848)5/22/2012 5:15:04 PM
From: Paul Kern   of 178675
 
This?
Hugoton Royalty Trust: How To Buy 60 Cents For A Dollar seekingalpha.com 

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To: sammie44 who wrote (168827)5/22/2012 6:17:53 PM
From: 16bit   of 178675
 
Sammie44,
“The market has already price each well at about 3MM net, so the upside needs to come in the form of increased density, or their ability to buy more land cheaply."
Can you please explain why you believe the market has priced each well at $3MM? I would really like to understand how you came up with that number. I've take a large position (for me) on Osage and I'd really like to understand the case against the company's valuation. From what I see, I can't believe there is any way these wells are “at about 3MM net”.

Wolf 1-29H
733 Bbl/d oil * .195 net royalty interest = 143 Bbl/d oil to Osage
863 Mcf/d gas * .195 net royalty interest = 168 Mcf/d gas to Osage

143 Bbl/d * 30 days * $90 per Bbl = $385,924 / month Gross revenue from oil
165 Mcf/d * 30 days * $2 per Mcf = $10,097 / month Gross revenue from gas

$385,924 + $10,097 = $396,021 total Gross revenue 1st 30 days.

From Osage 03-31-2012 10-Q:
In the US, we sold 4,074 BBLs at an average price of $99.51 in the 2012 period compared to 160 BBLs at an average price of $84.84 in the 2011 period. In March 2012 we began well production in our first and second wells in Logan County, Oklahoma, which accounted for the majority of the increase in oil sales in the United States.
Osage's 10-Q seems to validate my numbers. Looks like the Wolf 1-29H will bring in about $4.5MM in new cash flow for the first year. How can it have a price of “3MM net”?

Osage plans on drilling 12 wells this year. Let's do some pretend and assume they get all 12 wells drilled, completed, and producing by March 31st, 2013. Next let's assume that these wells are only half of the Wolf 1-29H. So, instead of 143 Bbl/d of oil, Osage nets 70 Blb/d of oil. That would give them 840 Bbl/d oil for 12 wells. 840 Bbl/d comes to about $2.3MM revenue per month for March 2013 using $90 oil. Their current monthly revenue is about $452M per month. (And this last quarter included a month of revenue from Wolf 1-29H.)

My problem is I don't really know how to value Osage. I don't have much experience nor do I have a mentor. I just look at the potential cash flow from these yet to be drilled wells, and I think, I'd pay a lot more that they are currently worth for that cash flow.

No doubt, Osage is a high risk stock. If the Krittenbrink 2-36H flops, I'll wish I hadn't bought Osage. At least at these levels. :) I just don't think it'll flop. Devon's Matthews 1-33H, which is 8 miles east of the Krittenbrink 2-36H IP'd at 960 Boepd and had 30 day production of 590 Boepd with greater than 80% oil.

Blessings, Byron

PS: If there is a “mentor” out there in Silicon Investor land, I'd love to meet you.

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To: teevee who wrote (168812)5/22/2012 7:17:13 PM
From: selivanov6 Recommendations   of 178675
 
teevee, the Obama bum is going to turn this banana republic into a giant ghetto. Nothing is going to get built.

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To: selivanov who wrote (168851)5/22/2012 7:25:24 PM
From: teevee14 Recommendations   of 178675
 
If a giant ghetto is what Americans want their country to become, they are free to vote for Obama.

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