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

To: E_K_S who wrote (42325)	4/20/2011 12:01:49 AM
From: Spekulatius	Read Replies (1) \| Respond to of 78661

BBG's finding cost are <2$ MCF billbarrettcorp.com Another way to find out their realcost is look at the DDE cost (depletion and depreciation) in the income or cash flow statement. DDE is nothing other than the historical cost to find those reserves. According to their 10K, this value is 2.7$/MCFE. This is not a bad value for the all- in cost. Most Oil and gas companies will present values for stuff like IRR (internal return on investment), F&D cost that does not match up with their historical track record. i would regard what they tell (or sell to ) investors with a grain of salt. I prefer to see how they actually do, rather than what they promise. Even though BBG is not "oily", they have shown am ability to grow reserves from internal generated funds with a +15%/annual clip and I think they can do this a couple of years more. This should create shareholder value even at currently depressed NG prices, with upside for their "oily" part or if NG prices rise. I don't own it, but it's a good one to watch. All else being equal, I would buy some shares at 35$ or thereabouts.