Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Gold/Mining/Energy : Big Dog's Boom Boom Room -- Ignore unavailable to you. Want to Upgrade?

To: E_K_S who wrote (184561)	6/23/2014 7:35:13 AM
From: Ed Ajootian	Read Replies (1) \| Respond to of 206160

EKS, Swift Energy (SFY) -- since in recent years, Swift has been under severe pressure to come up with enough cash to even just do all the drilling they want, I highly doubt that they have put much if any money into mid-stream projects. The way I understand it, an E&P company with a big gas gathering project ahead of them has 2 ways to go -- one is to build the mid-stream stuff themselves, or the other is to approach a mid-stream firm in the area and enter into a contract wherein they promise to supply X amount of gas over an extended period and will pay $Y/mcf for transportation costs, as long as the mid-stream firm builds the required infrastructure out, posthaste. The way the PR was worded, I'm pretty sure SFY's deal with Howard is the latter format. Once an E&P company goes that route there is no asset to drop down into an MLP.