Current price may be a simple as..... .....a little too much negative sentiment being promoted about the capability of the management team at Equal in a shoot first....asks questions later market. The company has 31% of their dry gas hedged at $4.63 this year and are currelty getting over $100 per BBL for their oil and I believe currently getting ~$55 per BBL for their liquids. They have increased their capital budget to over $75 million to exploit the Mississipian assets beginning soon.
They have totally de-risked the first leg of the Mississippian asset develpment with the Atlas deal. The market should have seen the value in this move. In stead they droped the share price a tidy 25% more since the announcement.
The market is in the process of completely losing its rationality when it comes to resource stocks....but is gone completely bananas when it comes to natural gas weighted E&Ps. And the bad news is the shock has not even arrived yet.....when the caverns are completely full early this summer.
If the company gets any cheaper I am going to get a homeowner line of credit and by it.
I would say that it is ripe to the point of decay for a buyout, but there are so many undervalued resource companies right now,... there is lots of choice.
We cannot expect management to pull a rabbit out of a hat in this market, but I hope they can.
Last fall, Jennings Capital had a $13 target on this stock.