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To: Schnullie who wrote (107961)5/16/2012 1:02:31 PM
From: Dale BakerRead Replies (2) | Respond to of 118364
 
Did it not occur to you that MHR was buying current production and acreage for future production? What else does an oil exploration company do, make smoothies on the side in drugstores?

The info you are pounding the table for is all in the PR's about the acquisitions. Evans bought assets with current or future production value. Some folks think he bought too much in a short time, fair enough. We won't really see how the cash flow works until everything is integrated in Q3 and Q4.

But to write it all off now without evaluating the actual purchases is just hysteria. Go back and read the tone of your post, c'mon.

Final note - since he became CEO, Evans has executed on everything he promised and did, AFAIK. I can't even recall any dry holes mentioned in his drilling reports. And for that the common gets knocked around like the proverbial red-headed stepchild.

Frustrating market this year - again.



To: Schnullie who wrote (107961)5/16/2012 1:11:38 PM
From: MicawberRespond to of 118364
 
Pretty much explains why we have gone from $6.50 to $4.00- and dropping- in the blink of an eye. That, coupled with the fact that pretty much anything to do with oil is getting killed.

Seems to me the bet going forward is: Do you believe he is finally done doing acquisitions and diluting the h*ll out of current shareholders? Will he now just focus on developing what he has and pumping oil like crazy? Will crude prices and demand stabilize?

I'll be watching the short position for insight on the first two questions.



To: Schnullie who wrote (107961)5/16/2012 3:31:03 PM
From: upanddownRead Replies (2) | Respond to of 118364
 

The problem I have with the Baytex deal is that they seem to have paid a very high price for little current production.

How many years will it take for the acquisition assets to generate enough cash flow to cover 10% interest on $311 million debt?




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