At
SeekingAlpha, a suggestion that further M&A activity is likely in the oil patch.
There is still value out there for those who know where to look, but
some of the best shale plays are now getting to where we view the
acreage as fairly valued. What we mean by this is fairly valued for
today, not that there is not any future upside down the road. The key
for investors now is to focus upon these names with acreage which will
be increasing in value and also seeing production increases. We have
highlighted numerous names over the years but there are still more out
there where the risk/reward scenario is attractive. It is a great time
to be in these names and we think that the party can continue for a few
more years.
The
writer does not mention Oasis, but does write:
Very few people have the ability to set our inbox on fire, but Jim
Cramer did that with his discussion of potential takeover targets in the
oil and natural gas E&P names. Most of our readers wanted to know
our take on two names he pointed out, Kodiak Oil & Gas and SandRidge Energy,
which we have discussed over the years in our commodity articles.
Kodiak we actually discussed recently in that fashion but still think
that they have a bit of a dark cloud over them because of their failed
sale this past year. It should not matter, but in business it does.
SandRidge is a different story.
Yes the price is manageable for a number
of players, but the assets are gassier than previously expected and the
company is now essentially focused on one growth play which is not in
the top five plays to be involved in on anyone's list that we have seen.
If someone is going to buy SandRidge it will only be after the company
has effectively proven solid reserves and shown that considerable
liquids are located throughout their acreage in both Oklahoma and
Kansas.
Ignore the part about Jim Cramer. LOL.
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