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PennyMac Mortgage Investment Trust T.PMT


Primary Symbol: PMT Alternate Symbol(s):  PMT.PR.A | PMT.PR.B | PMT.PR.C | PMTU

PennyMac Mortgage Investment Trust is a specialty finance company. The Company invests primarily in mortgage-related assets. The Company conducts all its operations, and makes investments, through PennyMac Operating Partnership, L.P. and its subsidiaries. The Company's segments include credit sensitive strategies, interest rate sensitive strategies, correspondent production, and corporate. The credit sensitive strategies segment represents its investments in credit risk transfer (CRT) arrangements, subordinate mortgage-backed securities (MBS), distressed loans, and real estate. The interest rate sensitive strategies segment represents its investments in MSRs, excess servicing spread (ESS) purchased from PFSI, Agency and senior non-Agency MBS and the related interest rate hedging activities. The Correspondent Production segment serves as an intermediary between lenders and the capital markets by purchasing, pooling and reselling credit quality loans.


NYSE:PMT - Post by User

Post by CravenRaven101on Jan 12, 2012 4:48pm
371 Views
Post# 19398395

where's the downside?

where's the downside?

in regard to NG drilling... the mistake is thinking CDN NG is tied to US NG... American NG drilling activity is being driven by THE major difference betwen the two countries' Mineral tenure systems... IN Canada IN the WCSB the majority of mineral rights are owned by the crown... private companies "lease" mineral rights or buy exploration licenses which typically have a 5 year shelf life meaning... the company can drill or prove economic production to convert a license to a lease and typically a single well can "convert" several 1/4 sections of land  and so long as a company can show the lease is producing or capable of producing the company can lease the land into perpetuity...

IN the US of A... majority of minerals are freehold... a typical mineral lease gives the Lessee 3 years to drill and produce or they loose the lease... ONLY the leases within a drilling spacing unit (typically 160acres?) will become "long term leases" where a company can drill.. prove it's economic then shut it in (and pay a shut in royalty to validate the lease) essentially meaning that a company has a 3 year window to drill on recently leased lands... IF they cannot, or choose not too... good by lease, goodbye bonus payment, goodbye production, goodbye reserves... once again this is "GENERAL" AND "TYPICAL"

Do Y'all think American companies would accept foreign cash to drill on American soil IF it was NOT 100% necessary?  every major and senior E&P HAS to drill to keep their leases OR they loose that "investment"

The price of a Gig has NO bearing on drilling activity, it's about the money already sunk into Hundreds of thousands (millions) of leased acreage AND companies trying to hang onto those leases...

 

do as you choose with that information... KNOW what it is your investing in... KNOW the difference between US and them... 

 

as always it is MY opinion git yer own...

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