Stock price when the opinion was issued
(A Top Pick Aug 27/14. Down 50.75%.) Believe it or not, this is the best environment for this company. If you look at what they did with Bonterra (BNE-T) where they were buying oil assets when no one wanted oil. Now it is buying dry natural gas assets when no one wants natural gas. They are probably going to end up getting some really good deals. For a longer-term thesis, this is a great managed company and they have a great idea in being contrarian in their space.
What makes this different is that it is the gas version of Bonterra (BNE-T). An unhedged company. Their track record has been built upon acquisitions. In a way with assets others don’t want. The issue is very low declines. The margin quality is not what you would like. Balance sheet is a little stretched because of a weakness in prices. (This was a very lengthy explanation which I could not follow. You might want to check BNN’s tape to hear it word for word. - Bill.)
It is about as leveraged to depressed energy and gas outlook as you could be. They run unhedged. It is the worst position to be in when the prices are weak. They have relatively low margin. People like that it is unhedged and gives direct exposure to ACO pricing.