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Strategies & Market Trends : Value Investing
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To: Jurgis Bekepuris who wrote (54632)12/17/2014 3:46:11 PM
From: E_K_S2 Recommendations

Recommended By
Jurgis Bekepuris
Mattyice

  Read Replies (2) of 78634
 
Re: SFY

I like their assets and the recent TPLM sale could set the bench mark for future asset prices. Still FCF can make interest payments but to pay off that 2017 debt, they need an asset sale.

If they try to roll it over, it may/could be difficult if/when the FED actually starts to raise rates. My guess is FED will keep rates low for a very long time. Therefore, SFY needs to get their wells producing to replace their depletion rates (especially their NG wells) and get their Louisiana parcel sold.

Since they have more NG than Oil, the recent WTI crude drop is not so painful. It may impact their IRR on new Eagle Ford wells but now it's just survival mode. They must get the most "value" out of the assets they already own.

FWIW, SFY common shares +35% back above $4.00/share. My avg price on the common is now at $5.02/share.

EKS
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