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

To: Paul Senior who wrote (46564)	2/13/2012 2:23:23 PM
From: E_K_S	Respond to of 78666

Hi Paul - Looking at all of my ERF Buys 8/2010 and 10/2008, they were all around $22.50, so w/ the stock now trading at $23.42 and Oil selling over $100 per barrel, it just might be a good entry point considering the recent run of the market. I am looking to add some more Oil (as long as it is fairly valued) to my portfolio. I have HES on my list and will move ERF up on that list on any price around $22.5. Thank's for the McDep link as I should look at those reports more often. EKS

To: Paul Senior who wrote (46564)	3/13/2012 11:42:20 AM
From: Bocor	Read Replies (1) \| Respond to of 78666

Question for you on ERF since you seem to have a lot of knowledge on the company. I have been looking at it since January, but have not yet pulled the trigger. I am making room in my IRA so I can avoid the tax bite. My questions relate to why ERF has used so many of its assets on new gas acquisitions when there is and will be a market glut of natural gas for all the foreseeable future. It seems to have even diluted its stock equity recently for this purpose. Are they just looking at the long term picture? Buying straw hats in the winter?? It's earnings seem flat with little improvement in sight. It's costs, especially drilling and administrative costs are fairly high, no? Any idea whether they can maintain the dividend? From Q4 results: "Our adjusted payout ratio, which calculates dividends plus capital spending divided by funds flow, was 221% for 2011. However, after including our net acquisition and disposition activity, our adjusted payout ratio was 153%. Our payout ratio has increased year-over-year as a result of our significant investment in early stage growth assets that are not generating immediate production or cash flow. This has been compounded due to the decline in natural gas prices." Will the dividend be partially funded from proceeds from the recently issued shares to Canadian investors?