how high is G&A We all know that Eagle's G&A is quite high.But is it high when
compared to its peers.It's time to find out.
I used 6 other companies with similar production,they are
AEI,RE,MEI,ZAR,Q.A,MQL. avg 2015 production 4,400 boed,Eagle 3,400 boed
Caution,please read at your own risk,info main cause Adverse Events.
Their G&A for 2015 ranged from $2.90-$4.90 boe avg $3.60 boe
Eagle's G&A for 2015 $9.00 boe $9.00 boe
I'm sorry but could someone dial 911,I might be having a myocardial infarction.
Lucky I had a defibrillator handy,that was a close one.
I wonder why this comparison never shows up on their presentations.
Our G&A is only 2.5 X more than our peers.If that won't attract new investors what will.
Having production in the US and Canada does increase costs,
but AEI was in the same boat and their G&A was $3.10 boe for 2015, prod 3,700 boed
What's the main reason for the higher G&A? Quite simple,because they can.
Here's are links for the Iradesso Report and main page they're of great value
https://iq.bmir.com/main/documents/iq_reports/iQ-2015-Q2.pdf (see pg 13,32)
https://iq.bmir.com/index.php?page=iq_report
The large producers with over 10,000 boed (pg 32) have G&As ranging
from $0.25 -$4.10 boe median $1.80 boe.Why is the highest only $4.10 and not $8?
Institutional investors won't tolerate it,they would get voted out the door.
Small companies have little if any Institutional investors and guess what? Their G&A reflects that.
When the institutions are away the G&A will pay.