Equal Energy Ltd EQU

Very Pleased with Equal Energy sale of Lochend

[pogohere]

So let’s take a quick look at what we have with Equal.

The Haas Report, which was the 2011 reserves summary attributed total proved and probable reserves of 499 Mbbl of crude oil, and 108 Bcf of natural gas and 13,931mbbl of NGLs to the Hunton.

With the uncertainty of the asset sales out of the way, I have to think that Equal moves significantly higher from here. I don’t know how the stock will open tomorrow, but if it is anywhere below $3.50 I will be adding to my position. I have been looking around for natural gas weighted E&P’s to play a potential upturn in natural gas with. I have not found a company with the valuation metrics of Equal.

Equal has always been very cheap, but there have always been reasons to doubt that would change. Those reasons have slipped away one by one. One has to be clear of the upside. The stock could easily open around $3.60 tomorrow, which would be a 20% gain on the day, and yet its my opinion that an eventual move to $5 or $6 per share is not out of the question. Which makes that 20% move not so unreasonable.

https://reminiscencesofastockblogger.com/2012/11/04/very-pleased-with-equal-energy-sale-of-lochend/

[bakken13]

EQU has indeed gotten very good prices for the assets they liquidated. It has now come down to the liquids rich, but very wet, nat gas assets in Oklahoma. What will the market think it is worth, considering a continued very weak market for propane and ethane? If we have a cold winter, prices could make a comeback. If not, once nat gas drilling starts to ramp up again, the supply/demand balance for

[algrove]

The free cash flow might be considerably more if the OK assets are bought by a trust in exchange for its shares.  For example, if Argent which N mentioned, were to offer 0.6 - 0.7 of its units for each EQU share, the latter shareholders will have ownership in a trust but without the duplication of costs (management, legal, accounting etc).  So it could be a win/win situation. 

[dbeaude]

I am easy. They are now is fantastic shape financially and are highly de-risked. Yes a US MPL with a over-valued share price can afford to pay premium valuation for the reserves and production and still be very accretive for them. So yes a $190 million purchase price and assumption of remaing debt would generate a purchase price of $5.50. Bakken13 why don't you wait to see what they company

[bakken13]

"you have been a poster on Stockhouse for 6 weeks and already have 65 ignors" ------------------------------------ That's because I challenge the liars, bashers, and pumpers that are so numerous on this site. This board is a nice change, as it seems there are serious investors trying to hash out realistic outcomes. I always play the devil's advocate, as I find it challenges

[dbeaude]

I to Bakken have been burned and burned good but this one thing I feel I know about Equal. It is in a much much better position than it was six months ago and would be in fantastic condition if not for the conididental downturn this summer in the NGLs which were the saving grace for the NGL weighed gas producer. Equal now has financial flexibility. They have an additional $10 million of cash

[HOGI]

most that we have seen convert to pay div start at$10.00,so now a revers split will cut your shares in half.

[cookster9]

This post has been removed in accordance with Community Policy

[AlertMe]

BXE - Bellatrix Exploration Ltd

[darb]

AlertMe..............where did you get the BXE news from? I am a big BXE shareholder and, therefore, quite interested.

[barqshasbite]

Your guess is incorrect, BXE did not make this acquisition

[barqshasbite]

Pure speculation on my part, but I think there is a very good chance it was Pengrowth that made the acquisition. The EQU Lochend lands compliment PGF's acquired NAL Lochend lands and since they just raised almost $400 million a couple weeks ago, I think it is a bet they made this purchase.