NPValue --
<<Sorry if this post is perceived as "negative,">>
Certainly not perceived such by me. You ask valid questions and make reasonable statements. I don't think UP is receiving US$2.14, though. More in the range of US$155-1.65. Depending where in the US the gas is being delivered, the price varies quite a bit.
Management has been spotty; that's why Michael Watford was hired. The "old" team was mostly explorationists and deal makers. Hopefully that will change now that production wells are coming on line and with Watford in charge.
As to why a major hasn't jumped all over UP, I can only guess that it is off the radar for most of them, small potatoes besides. And with oil and gas being so depressed for so long most of them are working at staying even or aligning with other majors, or merging. It could also be that the majors don't feel that comfortable with the technology of tight sands drilling. It is fairly new. Also, the majors are primarily oil, although Amoco (now BPAmoco) took over Snyder's Jonah wells in exchange for property elsewhere, and made a shift to gas a few years ago.
I'm losing patience, too. If I had to sell my UP stock today I'd be looking for a strong tree and a strong rope! Basically I'm sticking with UP for some non-bottomline intangibles: Its relationship to the environment, to the people of southwestern Wyoming; its ability to work with the environmental groups; its good relationship with the BLM; the deal with Pacificorps to curb pollution; the things it does around its wells to contain air and water pollutants. For me these are examples of a company that is forward looking, not some company out to make a buck no matter the cost. This company has always acted as though it intended to be around for the long haul!
I guess the coming months will settle the matter. Me broke or me on the mend!
Gerry Atwater |
