The perception of weak natural gas pricing has held this stock back. If they report weak Q1 earnings, it may not be until the fall that they will be able to prove themselves. He thinks there is better opportunity trading E&P companies. In the services sector he has picked other horses.

The financial leverage is too high and there is declining production per share. He would not own this. There are better names with a lot less risk.

He has said to buy it for the yield as he does not expect a high capital appreciation. Its yield has retreated to about 8%. It is trading 3.6 times EBITDA at $70 oil and could return to $10 per share. They have only moderate leverage towards higher discounted oil prices, unfortunately they have too little liquidity to attract large investors. Yield 8%.

He would not own this stock. They have too much operational risk. Their funding is dependent on asset sales and management is vague on where future value is going to come from.

They missed yet again on their guidance and senior management has been departing the company. They have achieved a lot, but have consistently over-promised and under-delivered.

This is a great way to play new LNG development. If you own it, ride it into the Shell decision to go ahead with LNG. With the right asset sale they could dramatically improve their debt-cash flow metrics, so that could make him more bullish eventually.

He thinks this is a high quality hold, but does not have enough of a high enough beta to oil. Good assets and management team, but won’t be able to really crush it in the next year.