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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: E_K_S who wrote (38929)	8/23/2010 8:08:17 PM
From: Paul Senior	Read Replies (2) \| Respond to of 78670

Been in ERF for several years ('06-'09 buys). One of my biggest losers currently. Is what happens more times than I like when I reach way up for yield and the distribution subsequently gets cut. I continue to hold, will follow you now though with a bit more in after-hours today. I like ERF's positioning itself in the unconventional shales, esp. for oil. Aside: Holding ERF currently in an ira, so not able to get the foreign tax credit. (It amounts to about 15% of the distribution.) Have made new buy now in a taxable account. (Just to get the tax credit, although it seems useless to me now, because I've already got more credits than I can use for taxes on "offsettable" income. Hence these credits just get carried over.) =========================== I don't like the Marcellus, and I try to avoid companies that are concentrated there. Marcellus is primarily gas; gas prices are in a downtrend. (It's a seasonal effect "they say".) To me, there's a glut or will be with all these unconventional drilling operations. I'd read in past that when glut happens, the companies aren't profitable or profitable enough, and so they stop drilling. Otoh, I've also read recently that some of these newer leases are held with the contractual requirement that drilling must proceed within a certain time or the drilling rights revert back to the land owner. Canada or maybe it's just one of the provinces, has a policy (or so I read again) that they give some land to drillers with the proviso that the drillers will drill, and then they get to keep the drilling rights. And if they don't drill and produce gas (or oil), the land leases revert back to the gov't. So this gives the drillers an incentive to drill even at unprofitable prices so that they can continue to control desirable acreage that will be valuable if/when gas prices increase.

To: E_K_S who wrote (38929)	8/24/2010 2:20:58 AM
From: Spekulatius	Read Replies (2) \| Respond to of 78670

re WMB, EP - both have about the same PE but WMB is less leveraged and hence cheaper. EP's and WMB's pipeline business are of comparable size and earnings power. I think that WMB has a stronger management, based on the longer term track record but recently EP's stock has started to outperform. I think the switch from EP to WMB is a good idea.

To: E_K_S who wrote (38929)	11/15/2010 11:47:36 AM
From: E_K_S	Read Replies (1) \| Respond to of 78670

Williams Companies, Inc. (WMB) November 11, 2010 Williams to buy Bakken oil acreage for $925 million finance.yahoo.com From the article:"...Natural gas producer and pipeline company Williams Cos Inc (WMB.N: Quote, Profile, Research, Stock Buzz) agreed to acquire about 86,000 acres in the oil rich Bakken shale for $925 million, in a bid to minimize impact of weak gas prices on its bottomline...." =================================================================== That's $10,755/acre. The price per acre is getting pretty expensive. I wonder if they are late to the party of they have other revenue streams they are considering (like gathering, processing & transportation) in this transaction. EKS

To: E_K_S who wrote (38929)	4/8/2011 1:24:11 PM
From: E_K_S	Read Replies (2) \| Respond to of 78670

Re: El Paso Corporation Common Stoc(NYSE: EP) - acquired @$7.60 9/03 Peeled off EP shares to buy Sundance Energy Australia Limited (SDCJF.PK) EP is one of those long term holds that I bought after the stock tanked from $60.00/share in late 2002 to a low of $5.00/share in 9/2003. I still continue to hold a sizable position in EP but recently have cut my original position to buy WMB (8/10 @ $18.58) and now SDCJF.pk (@$0.97/share). The money is still invested in the Energy and the Pipeline midstream Sectors. The WMB trade has worked out well (up over 60%) and I believe Sundance Energy will do quite well too in 4-5 years as they develop their Niobrara shale properties. EKS