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

To: Ed Ajootian who wrote (188327)	1/24/2015 9:39:43 AM
From: Bearcatbob	3 Recommendations Recommended By bejay CommanderCricket Paul Smith Respond to of 206325

The remainder of the call.

To: Ed Ajootian who wrote (188327)	1/24/2015 2:31:57 PM
From: Jane4IceCream	5 Recommendations Recommended By Bruce L CommanderCricket isopatch Jim P. Oblivious Read Replies (2) \| Respond to of 206325

MHR….IMHO….and though I am not as astute as most here regarding the energies though I have been investing and trading them since the mid to late 1990's and I do follow MHR closely…… Upside in MHR may be limited sufficiently due to the mystique of Gary Evans and his penchant to incur more debt and highly leverage the different arms of the company. On a technical view it is much more difficult for common shares of a company to appreciate compared to mid or large caps due to the skepticism and barrier to funds being able to invest in most shares under $5. I like what Gary has done to promote MHR and to acquire pretty good properties but……I am not sure I could trust him any more based on his comments. Why invest in MHR when you can most likely see a better investment or trade in issues like WLL, OAS, SDRL, RIG, etc…etc….if you think oil/ng is at or near a bottom? I am only trading MHR…..but still hold a decent size investment in an ira. Takeover talk…..yeah….but don't look for double digits any more in a potential buyout. Gary will be lucky to get $5 or $6 a share now. Until MHR can demonstrate less and less debt ratio I am very leery. Sorry if I ramble….carry on. Jane:-)

To: Ed Ajootian who wrote (188327)	1/24/2015 3:23:16 PM
From: kollmhn	1 Recommendation Recommended By isopatch Read Replies (2) \| Respond to of 206325

Ed- I didn't even listen to the CC but I did look at their presentation materials and I think the CC was an attempt to distract from the reality of their finances. They used 6/30/14 PV-10s, for instance. And, what, acre prices haven't declined? If they hadn't largely moved away from oil to NG they would be a BK candidate today. Granted, with almost 90% of their production in NG they haven't suffered as much as others. Nonetheless, they indicate they have only 20% of their 2015 production hedged at $4.09. So, if NG declines and hedges runoff, they will feel the pinch. Also, they are girding for it by closing three regional offices and cutting capex In short, while Evans is highly regraded, a prolonged commodity downturn will bite them on the ass. I owned a healthy slug of both the Cs and Ds but I bailed them last year in the 40s and 30s for an unexpected loss. Importantly, last week the 9.75%s barely budged after the CC (now around 70-72). As you know, I hold the credit guys in far higher regard than the stock jockeys and pfd players. Seems they didn't buy the CC schtick. Ergo, I would sell the recent price move in the Ds and believe that new lows will be seen.

To: Ed Ajootian who wrote (188327)	1/25/2015 11:27:27 AM
From: Paul Smith	3 Recommendations Recommended By Bearcatbob bejay Sam Respond to of 206325

RBC update on MHR following excellent management call <copied from another board> Highlights Reduced Spending Plans & Addresses Liquidity Concerns On Investor Call Our view: Cutting D&C CapEx & leasehold spending dramatically in 2015; announces a plan for a potential Ohio Utica/Marcellus JV; Nearly all previously completed Marcellus/Utica wells back on production Key points: 2015 Upstream CapEx Cut To The Bone. MHR guided to a tentative 2015 Upstream CapEx budget of $120 million (including $20 million for leasehold), down ~40% from the Company's preliminary spending thoughts in November. MHR curtailed all new drilling and completion activity in early January, as the Company anticipates significant service cost reductions to kick in later this year. Thus, MHR's 2015 D&C spending would be severely back-half weighted. MHR believes this D&C budget can generate FY15 production of 30,000-35,000 Boepd (RBC at 31,800 Boepd). Finally, MHR spent $12 million in January on Utica leasehold, completing 80% of its commitment for its 2013 MNW acquisition (~25,800 net acres in total). MHR believes the final 20% of the acreage is not likely to pass title. Current Liquidity Situation In Decent Shape. MHR reiterated that it received $55 million in December for the sale of a 6.5% interest in its Eureka Hunter midstream assets. We estimate MHR ended 2014 with liquidity of roughly $235 million ($185 million cash, $50 million of revolver availability). With its reduced 2015 spending outlook in place, we are currently modeling MHR outspending cash flow by ~$40 million, leaving ample liquidity at YE15. More Liquidity Breathing Room On The Horizon. MHR is pursuing a JV on its Ohio Utica & Marcellus acreage, which consists of over 100,000 net acres. MHR has hired advisers to lead a process and believes it can raise $300-$500 million in a transaction as soon as March. MHR believes executing a JV would allow for an acceleration of gassy drilling in 2016 & beyond, when the Company is more constructive on prices. On a separate note, MHR has put the sales processes for its Bakken and Kentucky assets on ice, but we believe the Company should be well funded into 2016 without these divestitures. 1Q15 Production Poised To Spike As Shut-In Production Almost Entirely Back Online. MHR reported that nearly all of its Marcellus and Utica wells that were previously shut-in are now flowing to sales. The Stalder pad is the one remaining pad that is still offline, and should be returned to production in 2 weeks. MHR disclosed that its Stewart Winland Utica well in West Virginia had average production levels of 22-25 MMcfgpd over the last 30 days, which is impressive. MHR also reported that its 3 Marcellus wells on the Stewart Winland pad were producing roughly 16 MMcfgpd (with additional 80 barrels/million of liquids), which is impressive. Overall we expect 1Q15 production to increase 75% sequentially.