CWEI is featured in the February Wall Street Digest. The article, sent to me by Lajuanda Holder, CWEI's Director of Investor Relations, is quite long but here are a few of the things said: "the Cotton Valley Lime Pinnacle Reef Play In East Texas now represents the hottest onshore drilling site in the U.S." "Of all the players in the highly competitive natural gas exploration and production industry, a relatively small company seems to hold a very large advantage. Clayton Williams Energy, Nasdaq: CWEI, primarily due to its significant acreage holdings, and its small market capitalization, is by far the most leveraged company to this very prolific tract, referred to within the industry as the "play."
The article also talks about CWEI having plans to select a major partner for the 3-D seismic shoot, and the subsequent drilling but as far as I know, at this time, CWEI has not taken on a partner, nor am I aware of any plans for CWEI to do so. It is my belief that they are doing the 3-D survey alone; as far as whether they do the drilling alone, that still remains to be seen.
The article goes on to conclude: "The stock is currently trading at approximately half of the average cash flow multiple of its peer group, based upon 1997 estimates." "the company's significant holdings in the East Texas Basin suggest that Clayton Williams Energy is significantly undervalued. Most interestingly, the evolving East Texas Reef Play is expected to drive the stock much higher, and could boost the net asset value by as much as 90% within the next year."
Well??? |
