NOG: 12 cents/share.
Production increases 235 percent over 2Q 2009.
NOG's business model is different than KOG's model.
I have no idea how the retail investor can set a value on these companies. Today, for example, retail investors are willing to pay $3.00/share for a company who just earned one cent/share this past quarter and will soon issue more shares. For NOG, retail investors are willing to pay $16/share which earned 12 cents per share this past quarter.
I'm just thinking out loud -- coffee talk -- nothing more than that since Amtrak gives me the time to ponder (and enjoy incredibly beautiful scenery, and probably a free night in Chicago).
One company is probably "stuck" with the acreage it has, and really can't buy more. It needs cash just to drill the leases it already has. Someone said earlier their is no risk of oil companies losing their leases due to lack of activity/production, but KOG did face bureaucratic delays before the reservation was finally opened up. To conserve cash, KOG needs to partner with others , and I assume partners would pick and choose which wells and how much to offer.
NOG, on the other hand, has no acreage to worry about. NOG gets to pick and choose with whom it wishes to partner. NOG can go with companies that have a better success rate, and/or they can go with companies not constrained by delays in fracking.
NOG has some debt on it's books; KOG has none according to Yahoo!Financial.
It will be very interesting to follow these two relatively small, relatively pure Bakken plays over the next few years.
Bruce,, a little off topic, but on Investments.... When I was up there for that wedding (fyi - I sent you several pictures of Nabors 1 to your email account). anyway - we went to the ND state fair and some folks from "Integrity Viking Funds" were touting the "Williston Basin/ Mid-North America Stock Fund"... they have lots of the companies in the fund you talk about.
ReplyDeleteI am *NOT* an investor in this fund, I may later, but am only looking at it now...
thought you'd be interested....
Ticker is - ICPAX....
rory
Thanks for the tip. I was not aware of such a fund; but, I will definitely check it out.
ReplyDeleteover a long period it has not done well, but it would be interested to get info on the companies it is involved in - at least it puts the majority of them there.....
ReplyDeleterory
Sector funds, as a rule, have not done well. There are probably exceptions. But you are correct: it is another opportunity to see what companies folks are investing in.
ReplyDelete