looks like an entire revisit of the Flat Castle plan in NC Tioga co. Pa. the long lateral plan is too much for a new conservative management team and a company that has lost so many key employees that showed cutting edge technical skills under Ben Hulberts leadership. we all owe the old Eclipse a nod for bringing the whole e&p industry an incremental step forward. Montage is already setting up to be just another follower. sad day for technical risk taking and very cool engineering challenges.
V.P. Tolmachev is still laying on the beach @ Panama City. REALLY!! he's been traveling the world for months now...the merger is complete. about time Rinehart grabs the rooster by the neck and puts the kids in a sand box to see if they play together. sorry i come from a time before PC,FMLA and daddys taking off to nurse babys. if 12hrs. wasn't enough make it 16 or some back biter would move up. i guess little mom and pops like Montage don't have a long line of back biters.
I question anything that remotely touched Magnum Hunter
i question everything...always.
EX Magnum Hunter boss Gary Evans should never be allowed anywhere near a drilling rig / oil well .
Evans has nothing to do with Montage in any way today. CEO Rinehart comes from many years with CHK and a couple years with Ascent, prior to Magnum Hunter. he was successful in selling MH assets off to create a financially sound BRMR. Rinehart and vacationing V.P. Tolmachev crossed paths at CHK. one of my concerns for landowners going forward is how much McClendon DNA culture comes with a new CEO with so many years of close contact. time will tell. based on SEC filings containing a timeline diary of events, Rinehart went around Eclipse CEO Hulburt to Tolmachev with intial phone call. after around three dozen companys solicited by Encap, in reality, only BRMR was interested and only if Rinehart was new CEO. i spent my last eight years in the energy deal space, with Riverstone Holdings, and reality T.V. has nothing on these. human nature will never change. the current EQT/Rice war is just an example of many corporate power plays never really heard about by most people.
What is your take on the EQT / Rice situation going forward ?
looks like both sides will fight hard for control. everybody acts in their own self interests. EQT management will try to hold onto their jobs. they have been systematically severing the Rice side internally which is like cutting their nose off to spite their face. the Rice boys never had to sell in the first place but took risk when so much of the deal was in now depressed stock. DUH it's an e&p. now they want control to increase their stock price. problem is if or when they get control the company will not remotely be what it was and they will have a huge oil and water mess of their own making. cash knot deals on the barrel head are always best.
Seems to me the Utica is less profitable than the Marcellus . I think Rice brought a lot of Utica to the deal ....
way to many variables to make a blanket assumption. depends on the productivity of each and the cost to produce. using the higher pressure Utica with the latest reservoir management software has some thinking EUR,s may exceed previous expectations. either way all companys have to work with what they got. not all got lucky like Cabot with double layer high production. that was really just how the cards came off the deck early on.
AR , RRC , SWN , EQT nd others are getting no RE$PECT when looking at their share prices , gas below $3 and increasing producton has done damage
e&p companys in general have a real challenge in the stock market. how society places value on "things" is always interesting. since the '09 bottom the energy index is up 54%. nasdaq 480%. apple 1800%. ulta beauty products up over 7000%. in 40 years the only energy stock i have held long is due to stock awards via employer. shorting the cycles in energy trades is magnified to the downside and slow to recover on the upside. don't forget our cultures values regarding 330 million dollar ball players compared to pediatric life saving surgeons. is is.
Do any of these companies that are buying up mineral rights in the Marcellus/Utica sell stocks? those may be the people making the $ in the notsodistant future.