Delphi Energy Corp. DPGYF

RE:jerybe... a pure gasser!

[jerrybe]

Correct. Sorry for my previous post. 51% of their revenue is condensate/NGLs. Not oil. But condensate/NGLs have prices linked to oil, that's why they have hedging with WTI contracts for instance.

Condensates and NGLs are much more valuable than dry gas. I believe AAV and PPY have less NGL/Condensates than DEE in their production.

All of these players are gas players. 

Market cap has gone down a lot. The most overvalued stock was Blackbird, with a market cap close to DEE's but with a much fewer reserves. The first two wells have put the picture straight and Blackbird came crashing down.

DEE might linger here. We are in a down cycle. On Thursday, 11am EST, we will have the conference call. It will be the first major update by the firm in a few months. We are still waiting for the numbers of their latest well. I am hoping they will have good news on that front. In some sense, this coming year is very boring for DEE: Six wells, all close to their existing wells. They are definitely playing it safe and do not want to have a single miss here. They are in starvation mode and there is not much to get excited about, unless they really outperform on their fracking job. I believe it is the right approach. They might get linked to bigger players. Probably a good time to buy for big firms. But I expect M&A activity to pick up further down the cycle.

If you do load up on DEE, PPY, AAV and the likes, I do believe you have to lock them up for two or three years, only then will the cycle have begun to look favorable again. And then, I believe you can make a decent return on your investment.