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

To: Paul Senior who wrote (42171)	4/6/2011 8:20:00 PM
From: E_K_S	Read Replies (2) \| Respond to of 78758

Re: Rex Energy Corporation (REXX) PetroQuest Energy Inc. (PQ) Callon Petroleum Co. (CPE) I view REXX like PQ, both in their maturing growth stage where they are finally booking net earnings and shortly should show favorable relative PE's. REXX also has a very favorable net income to long term debt profile (even better than PQ) 1.6:1. Both of these companies are financing their 2011 CAPEX drilling programs from cash flows and have an aggressive program planned for 2011. REXX continues to invest in their Appalachian NG/Oil Gathering business and in 2-3 years may be able to spin off a percentage to an MLP (to raise more capital if necessary). 70% of their new capital is going into this region. REXX has more Oil assets (70% Oil/30% NG) than either PQ or CPE. Callon Petroleum Co. (CPE) is more like PetroQuest Energy Inc. (PQ) as both have interest offshore in the Gulf of Mexico. CPE has a bit more deep water assets. Even after paying down debt and doing a 2nd stock offering, CPE carries more debt than either REXX or PQ. CPE is a recent addition for me w/ buys in 1/11 and 2/11. Of the three, REXX has the best past performance: finance.yahoo.com I think after reviewing the REXX presentation, I like that they are building out their NG Gathering business and also have plays in the Niobrara high grade shale oil region. They are well ahead of the other two developing their Oil assets too. I think I will follow your lead and sell my CPE and put the proceeds into REXX. I would even consider REXX a "value" buy, based on their conservative balance sheet, developing NG gathering business, proven oil reserves (especially w/ oil at $108/barrel) and 45K net acres Niobrara land assets. This could be a rewarding 2-3 year hold. EKS --------------------------------------------------------------------------- FWIW, I have been using GOOGLE Calendar w/ their "events" feature to alert me (via e-mail) when 31 days have passed for buying back shares to avoid a wash sale. I set an event message 31 days ahead of my tax loss sales date. This way I am reminded of my buy back opportunity.