A long life asset. Where ever they drill on their properties, they have gas. Every year they increased their CapX to drill wells, they succeeded in producing more and these will continue to produce for years and years to come.
This company is growing very fast. Last quarter, revenues were up 83% EPS was up 85% year over year. Production in natural gas should grow about 50% per year for the next 2 years. Very little risk as every well they drill there is gas.
(A Top Pick Feb3/05. Up 2.5%.) Likes for the short, mid and long term. Looks expensive on a P/E basis, but they have a lot of reserve and every well they drill, they have gas. Margin in the last quarter was 42% after tax.
A good long term hold. Short term, doesn't know what the stock will do. Will be substantially higher in the next 5 years. A lot of reserves under the ground.
One of his best picks in the energy field. They have a pool of land where it is known there is gas underground. Growth will happen over the years. He feels natural gas prices will go up.
This company has had the highest margins of any company in the short-term. With the price of gasoline coming down, it is less effective. Expect them to make $3/3.50 a share in ’06 so it is trading at less then 20 X ‘06 earnings.
Has become a very large company, and he prefers a smaller company to start with in order to have growth. Still one of the best natural gas holdings in the US. Have a lot of potential drill holes. Not cheap. Wait for a pullback.