I read in the below article By Thy Ngugen, that TGC is expected to have an EPS of $1.99 in 2001. Also they have a 20 year suppy contract with a major plastics mfg, and will soon announce the new opening of a pipeline. Worth a watch in any NG portfolio.
def
...A special case is Knoxville, Tenn.-based oil and gas firm Tengasco Inc. (AMEX:TGC), which has gained 75 percent since Dec. 1. The company, which has a market value of only about $135 million, plans to announce in early March it has completed the only natural gas pipeline in Tennessee, Chief Executive M.E. Ratliff, who has a 37 percent stake in the company, told Reuters on Thursday.
That will help put Tengasco into the black this year for the first time ever, investors said.
"I suspect the stock will go higher at least in two or three more years," said Ed Gray, managing director at White Oak Capital Management Inc. which has $800 million under asset management and holds about $1.49 million worth of shares in Tengasco.
Tengasco on March 8 will announce that it has completed its 63-mile (100 km) pipeline and will start delivering natural gas from its Swan Creek Field, Tengasco's Ratliff said.
Among other clients, Tengasco said it has signed a 20-year contract with Eastman Chemical Co.(NYSE:EMN) to supply about $20 million worth of gas a year, or 80 percent of natural gas the world's largest supplier of plastic packaging will need.
The only brokerage analyst who covers Tengasco, Mark Michelsen at St. Louis-based Kenny Securities, estimated that revenue for 2001 will jump to about $35 million, mainly from natural gas, from about $6 million last year.
Michelsen estimated the company's earnings per share this year at $1.99, compared with a loss of 6 cents a share last year, and set a price target of $20 for the end of the year.
In the long term, natural gas stocks should be good investments because demand will continue to remain quite high, said Dreyfus' Ghriskey. |
