Showing posts with label Acquisitions2011. Show all posts
Showing posts with label Acquisitions2011. Show all posts

Thursday, September 19, 2013

Thursday Morning Notes, News, Views, Links, Whatever; Dish Wins In Court Over ABC -- This Is Simply Huge

I'm way behind this morning.

WJS Links

Blackberry to reduce workforce by up to 40%. Wow.

Google may stop tracking with cookies. Could be a very interesting alternative that would be a serious game changer. I hope they do it.

Starbucks: leave your gun behind. Posted earlier.

Big insurers are skipping health exchanges. One can see where this is headed. Trainwreck.

Priceline stock becomes the first company listed in the S&P 500 to trade at $1,000 in the index's history.

This is huge: Dish Network won a legal victory Wednesday as a federal judge denied broadcaster ABC's request to shut down features of its "Hopper" digital-video recorder.

BMW is testing new ways to build electric cars. BMW is launching the first large-scale test of whether building cars out of carbon fiber and plastic instead of steel can overcome the obstacles to adoption of electric cars.

Health care costs will rise about 6x the rise in inflation: National health spending will jump 6.1% next year when key provisions of the federal health-overhaul law take effect, a slower growth pace than previously expected, federal number-crunchers projected Wednesday.

White House signals Ms Yellen (emphasis on the "Ms") will be Fed chief nominee.

Detroit residents will get their chance to tell the judge about their concerns with cuts in pension.

Op-ed: I never read Karl Rove's op-eds, but I agree with the headline of his op-ed today -- defunding ObamaCare is not the way to go. But the tea leaves suggest to me the Tea Party knows what it is doing. They are taking a page from John Kerry's playbook.

Los Angeles Times

I talked about this earlier. The US, which can't even get weekly unemployment reports right, was demanding that Syria, with a one week deadline, must account for its chemical weapons which it has been stockpiling for 50 years, and which grew during the US-Iraq scuffle. The US is now backing off. I didn't bother to read any more than the headline, so I don't know if a new deadline has yet been put in place.

Hmmmmmm....our granddaughters and I were discussing earthquakes this morning -- while watching Bill Nye the Science Guy on her laptop before heading to school... and now there's a report there were a flurry of <4 .0="" angeles="" downtown="" earlier="" earthquakes="" east="" los="" of="" p="" today.="">
Ooohhh -- Ms Hillary Rodham Clinton will accept an honor from my alma mater, USC, in November. Whoo-ah! Maybe an honorary doctorate degree in political science. I assume Benghazi won't be mentioned. That, of course, forever ruined her chances for a Nobel Peace Prize. Or not.

Scientists discover a legless lizard near LAX. In other news, police report a man with broken kneecaps in Chicago.

The National Books Awards announces it 2013 fiction long list

The Boston Globe

Massachusetts has a new computer for tabulating unemployment insurance claims: it came in over budget and two years later. Unemployment remains at 7.2% in this state. Otherwise it's all sports and politics.

The New York Times

Top story above the fold, with a photo: Iraq becoming undone; more sectarian violence; worse than "before," whatever "before" was.

A must-read story: mystery solved over identity of author of "slave's biography." An incredible story. 
In 2002, a novel thought to be the first written by an African-American woman became a best seller, praised for its dramatic depiction of Southern life in the mid-1850s through the observant eyes of a refined and literate house servant. 
But one part of the story remained a tantalizing secret: the author’s identity.
That literary mystery may have been solved by a professor of English in South Carolina, who said this week that after years of research, he has discovered the novelist’s name: Hannah Bond, a slave on a North Carolina plantation owned by John Hill Wheeler, is the actual writer of “The Bondwoman’s Narrative,” the book signed by Hannah Crafts.
Beyond simply identifying the author, the professor’s research offers insight into one of the central mysteries of the novel, believed to be semi-autobiographical: how a house slave with limited access to education and books was heavily influenced by the great literature of her time, like “Bleak House” and “Jane Eyre,” and how she managed to pull off a daring escape from servitude, disguised as a man. 
I will have to read the book. Thank you NY Times. 

Wednesday, January 19, 2011

MHR Acquires NuLoch Resoures -- Bakken, North Dakota, USA

MHR acquires NuLoch Resources
Oil and Gas Journal link here

Magnum Hunter Resources
Corporate Presentation: January, 2011
  • Market cap: $500 million
  • Over last 18 months, new management with new strategy
  • Strategy: acquire and operate properties in Eagle Ford, Marcellus, and Williston Basin (Bakken/TFS/Madison)
  • Current Mix: Until today -- no CAPEX in the Bakken for 2011 (slide 5)
  • The big jump in production started in 1Q10
  • Production: 600 boe/day 4Q09 --> 2,800 boe/day 4Q10 (estimate)
  • Bakken acreage: 15,000 gross acres; MHR interest 43%, --> 6,450 net acres
  • Bakken acreage: not in the best Bakken; Burke, Renville, Ward, Bottineau, McHenry counties
  • Bakken: 3 hz wells drilled 4Q09 with IP of ~600 boe (gross) combined
  • Recently announced acquisitions: NuLoch Resources -- $327 million; NGAS -- $98 million

Nuloch Resources, Inc. Acquisition (some numbers rounded)
  • $327 million acquisition
  • Reserves: est proved reserves of 6 million boe; 85% crude; est probable, 3 million bbls
  • 14 net Bakken/TFS wells producing; approx 1,550 boe/d productive capacity
  • 71,600 net acres in Williston Basin (32,900 in Divide and Burke counties; 38,700 acres in Saskatchewan, right across the border from North Dakota); currently 1,070 boe/day productive capacity
  • ND acreage: most of the acreage is in Divide county (24,500 net acres); other, Burke (6,700 net acres)
  • 50,680 net acres in Alberta; currently 480 boe/day (50% light oil)
  • Approx 267 net identified Williston Basin drilling locations (Bakken/Three Forks Sanish)
  • No outstanding long term debt
  • Expected to close on / before April 30, 2011
  • Joint venture arrangements with operators in ND to include: Samson, Baytex
Nuloch Capital Expenditure Schedule
  • 2010 CAPEX: $30 million in North Dakota
  • 2011E CAPEX: $36 million in North Dakota
$1 Billion Market Capitalization
  • After NuLoch and NGAS acquisitions
  • NGAS: Marcellus natural gas asset
First knee-jerk thoughts:
  • NGAS a natural gas asset -- okay 
  • Only 54% of the new acreage in the Williston Basin is in North Dakota
  • Significant increase in Bakken acreage, but not "prime" Bakken
  • Explains recent price movement in Samson: new MHR management wants to drill in North Dakota and has partnered with Samson and Baytex [I changed this to "Samson" based on comment below; the presentation only used the word "Samson" and did not specify]
  • The "Bakken" cachet will move price action on companies involved, but need to see results of some wells; one big well can make a big difference in these small companies
  • A $1 billion market cap company overnight (MHR was a $500 million company before this acquisition) -- the deal is expected to close April, 2011