Management has a lot of experience in the world of natural gas and is a really good strategist. Have lots of running room in the assets they have acquired, but the rates of return they get on their projects aren’t of the 70%-80% higher ROE capabilities, but more like 30%-40%. They won’t hit grand slams, but will probably hit singles or doubles. He likes that. It is a more conservatively run business with a very well financed balance sheet. He would be pretty comfortable at today’s price.
Management has a lot of experience in the world of natural gas and is a really good strategist. Have lots of running room in the assets they have acquired, but the rates of return they get on their projects aren’t of the 70%-80% higher ROE capabilities, but more like 30%-40%. They won’t hit grand slams, but will probably hit singles or doubles. He likes that. It is a more conservatively run business with a very well financed balance sheet. He would be pretty comfortable at today’s price.
Shell Canada sold natural gas assets to Maplin Energy. Done through PI-X. This stock will turn into Maplin. It is a natural gas story with no debt. Deep basin. Good management team. It is a start up, a new story. Smaller market cap, no dividend. It trades at half the valuation of comparables. Once the market understands it, it should do quite well.
Shell Canada sold natural gas assets to Maplin Energy. Done through PI-X. This stock will turn into Maplin. It is a natural gas story with no debt. Deep basin. Good management team. It is a start up, a new story. Smaller market cap, no dividend. It trades at half the valuation of comparables. Once the market understands it, it should do quite well.
Highly dependent on Nat. gas prices. They have a great balance sheet with cash on it and plan some capital expenditures.