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What kind of news are you expecting? Unless there was a contract that locked in a profitable gas price, there is no way that selling on the current market will be profitable.
*contracts locking in a price are not out of the norm. Also should be easily verified. Last I knew, Williams had their coal bed gas locked in at profitable levels.
As a good stock promoter do you know if Miller Mfg is structured separate from HPGS or will Miller Mfg generate revenue to keep High Plains afloat? Miller Mfg sign is proudly displayed at the office but didn't see a High Plains Gas sign. Why?
Does High Plains have enough capital to run at a loss the next year+? This is key for loyal longs.
Specific question for you valley- how are the "ALS" pumps that Global installed working?
*Global is a good ALS company. They do good work.
BS!!! Find something with some volume and propaganda to huff and puff!! If you are an insider we could discuss a few things! Probably best you kept the promoting quiet for awhile.
Are you sure that Miller Manufacturing's revenue equates to HPGS revenue? I really have no idea but I find it interesting that they hung the Miller Manufacturing sign up but no sign for HPGS.
Maybe Miller Manufacturing is it's own entity?
As far as the Chevron deal at Table Rock, was down in that area short while ago. I didn't come across any Miller Manufacturing activity. It's quite a ways from Douglas WY and Gillette WY (about 6 hours from Gillette).
There is a fair amount of natural gas drilling going on around the state of WY. Haven't seen the coal bed methane drilling plans for 2011 but heard a RUMOR that Anadarko was laying off rigs for the 2012 season. I HAVE NOT VALIDATED THAT. Coffee shop talk.
Was milling around Gillette the last week. Visited with a lot of people. If you are buying the stock DO YOUR DD!! *As you should with any stock.
Henry Hub reporting price today $2.74 an mcf. Not profitable for coal bed methane. ESPECIALLY AN OLD FIELD.
Here is some info for ya:
http://money.msn.com/investing/why-not-drill-for-natural-gas-jubak.aspx
The age of the field, the discounted price of the coal bed methane combined with higher costs of old field production and the rest of the factors surrounding HPGS don't indicate large profits any time soon. In other words "Don't piss down my back and tell me it's raining"!
Check other production estimations, shut ins, storage levels, draw on those storage levels, projected demand etc.......
Natural gas will be back and is going to be a viable energy for the future. That doesn't necessarily equate to a huge upswing in 2012.
In consideration of HPGS- don't forgot to factor in the discounted price coal bed methane demands compared to the reporting price at Henry Hub. Another factor is an old gas field Marathon was happy to be rid of.
The loyal "longs" of HPGS better hope that the Miller Fabrication venture can generate enough cash flow to keep HPGS open.
*That is IF Miller Fabrication is indeed tied into HPGS to the extent that its cash flow will benefit HPGS as well as Miller Fab.
Manufacturing is the primary drive for increased natural gas demand. IE- steel mills burn a lot of natural gas.
Cold winters can be a factor but are not the primary driver.
Interesting take and much more refreshing than the huff and puff baseless pumping.
I haven't spoken to the Millers (Miller Fabrication) for quite awhile but do know them well enough that when I see them we take some time to catch up.
I haven't looked into it- what are some publicly traded service type companies that are similar to where High Plains may be going?
*I think that the long term natural gas/coal bed methane outlook is good. Maybe the service part of High Plains/Miller Fabrication will keep cash flow up until the gas price comes back up. Agree that the short term flippers may be disappointed. Volume has been down!
Check storage volumes and production volumes vs demand. Also check what drive the price of natural gas (hint- manufacturing) and check how many months of cold winter are available.
Check the price of coal bed methane in the Powder River Basin Wyoming vs the Henry Hub reporting price.
Check the overall economies of the world and ability to pay for high priced energy.
Take all that and compare to the production costs incurred by HPGS to produce an MCF.
From there you can decide to buy or not
I didn't intend on coming across as negative. Sure can't knock Mark Hettinger and what he has done.
I get fed up with the pumpin of kool aid that is meant to lure in gullible investors.
I was trying to stay with facts, reality and value based on a profitable product.
Coal bed methane is a tough deal right now. In the past I spec'd pipeline material, tank batteries, compressor stations, amine plants etc. I currently am dealing with emissions on the compressor engines.
This "new technology" will increase production and lower the production cost? What increased production be? How much will it decrease operation cost? Will it be the major answer to making coal bed methane profitable for hpgs ? Please be very specific.
I haven't been following this stock very closely in the recent months.
Their gas field is an old field that has seen it's best days gone.
Henry Hub price on natural gas is sitting at $3.16 The quality of coal bed methane does not get the price that is reported at Henry Hub.
Not sure exactly but last I knew, coal bed methane averaged around a dollar less an MCF of the Henry Hub price.
Anyone who thinks coal bed methane is profitable at $3 an mcf is off their rocker, much less at $2.50 or less. *Especially an old field whose production price is higher and output lower.
Encana and EOG are going to be drilling quite a few wells that have higher quality gas and higher output in the central Wyoming area.
Manufacturing is down throughout the nation. *Manufacturing is the true driver of the price of natural gas. Storage is holding at decent levels.
The recent acquisitions of Miller Fabrication is interesting but hardly a significant building block of a natural gas company. Even Hettinger Welding at its peak wouldn't have been a large enough company to warrant a stock symbol. (In my opinion only).
Keep in mind that legit, PROFITABLE gas/oil plays have no problem attracting private investors. At the smaller level like HPGS, it's the ones that have the "PROFIT" issues that need to go public
All my opinion and nothing else. Take it or leave it.
Your thoughts on this perspective?
lazyeye Member Profile lazyeye Member Level
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Monday, December 26, 2011 1:15:26 PM
Re: valley-view0 post# 19860
Post # of 19920
HPGS is $35 million in debt, and the Hettinger Bros alone own close to 200 million shares.
They can release all the positive PR's they want, and that may be good for a short term rise to low teens someday, but with that much debt and that many shares owned by 2 bro's (not to mention the millions and millions owned by other insiders and shares for services peeps), there is no way this stock is going to stay at wherever it may spike to.
There ARE a lot of shares to dump, by many many HPGS people. That's why one needs to be VERY wary of the pump.
That said, Mark Hettinger is the real deal. He was successful for sure in his other life. Not sure if he can pull a rabbit outta his arse with this company. My guess is he'll try, but at the end of the day, he won't care as he'll have 140 million reasons not to.
Miller Fabrication sign hanging out on the property boundary in Gillette today
I don't but I can find out. I will get in touch with Levi. It may be until after Thanksgiving. Heading for vacation. If I find out I will let you know.
Good for Levi and Ty! Happen to know them a little bit and am glad to see their hard work has paid off for them. Levi can design and manufacture about anything!!!
It wasn't meant to scare anyone. Often I am in the Gillette area and was going to the Anadarko office. It is next to the current High Plains office.
I see the High Plains field people around town in the morning. They are obviously working.
The current property their office sits on belongs to Mark Hettinger (ASSUMPTION- could have changed). The property is for sale.
I don't think it being for sale should be all that alarming. The property that High Plains is currently on may be a little over kill. It is large.
Drove by the High Plains office area today. The property is for sale as well as the previous office location. Does anyone know what the plans are in regards to office/yard property?
More wells online does not equate to profit. The coal bed methane is on its !%@. The Cheyenne Hub does not get as much as the reporting price @ the Henry Hub.
The coal bed methane also is not the highest quality gas- as a rule. The daily mcf production of the coal bed wells is ok but nothing compared to what some of the wells in ND produce as an oil byproduct.
The Bakken play is getting more natural gas infrastructure in all the time. That volume of gas will have an influence on the natural gas price.
Hopefully the gov will get its head out of its @#$ and utilize natural gas for city buses, school buses, city vehicles, garbage trucks etc..... It's a great fuel that can be used now vs the far out "green energy".
Until our manufacturing kicks back up, don't look for the natural gas price to change too much. Cold winters can drive it up a bit but manufacturing at steel plants and such is the real driver of price.
"I'm suffering severe depression because of my loss. Like Jim Cramer says, "Bulls make money, bears make money, and pigs get slaughtered." I was a pig when I bought 3,000 SWC at $16+ and definitely a pig when I bought 10,000 SVM at $8.14. The wall streeters slaughtered me like they do to the rest of retail main street. They are f^<king b $t@rds!"
I hear ya lol!!! I dug up a little cash and am thinking about adding 1000-2000 shares as an "average down". Going to watch it a and do a little more dd before doing so.
Severe winters does have some influence on the gas price but the main driver of natural gas is manufacturing. Steel mills, plants etc...
As a whole- last winter was long and cold. Reserves didn't deplete all that much and gas prices didn't rise a whole lot- especially when you factor in the weakening of the dollar.
Profits in the natural gas biz are scarce with the exception of the gas that is a byproduct of oil production.
The microbes down hole do produce gas. Many, many circumstances surrounding it.
In the Powder River Basin/Gillette area Lucas technologies is the most prominent company for putting the microbes down hole.
I do agree that there will be some runs to make money on. Buying at the bottom and not holding too long towards the top of a run are key.
It's a shame that they are coming out with the typical pink promos, dilution and bs that come with the territory of pink sheets.
That field they own is old but I believe natural gas will have long term benefits. Too bad they don't run it as a legit long play IMO.
EDIT- They keep pumping out bs press releases and continue to move towards a typical pink sheet play. Just enough actually going on to lure in loyal investors while the shares plummet.
Sadly they seem unable to orchestrate any momo runs.
Sorry if it offends but it is the reality of this stock. They bought an old field that Marathon wanted out of. The price of gas is down and it looks like a pink sheet money maker for the inside circle.
*As far as generating capital- legit companies have no problem attracting investors. Many small energy companies operate privately and can obtain private investors.
Few start out in the pink sheets.
Use caution in this play at this point IMO.
What's Mark Hettinger going to charge for rent @ his building vs where they were?
The Hettinger Welding facility that went broke is a large lot with several shops and a good sized office. I doubt it's cheap.
I know Schlumberger has a building in the same area and it's not near the facility that the old Hettinger welding facility is. Schlumberger was wanting $9,000.00 a month in rent.
With the run up of gold, what do you feel drove the GG price back down recently?
I'm holding this and my SWC for the longer term (at the moment lol).
I may add some more of both SWC and GG in the near future.
It looks like there is a struggle going on to discredit silver and gold as investments IMO.
Crazy deal!! Holding and watching cautiously for another buying point.
For the long term I still believe SWC will come back. Could be some good $$ to make but I've obviously been mistaken the last couple months lol.
I haven't been able to find out much of anything. I would be cautious about the Montana speculation. Coal bed methane simply isn't profitable at this time. I highly doubt that any drilling programs kick in gear this year. (significant drilling)
I really don't have any idea about the Australia play. I do have a friend that travels there for work a couple times a year. I will ask him about it.
With the massive selling off I am staying away from penny plays and looking for legit bargains.
Volatile times and money is going to made and lost in large portions IMO.
It looks like HPGS moved out of the Marathon building and into the Hettinger Welding facility.
*Hettinger Welding recently went bankrupt. Mark Hettinger I believe sold the majority of Hettinger Welding to a group of investors. He wasn't responsible for it going bankrupt is my understanding. He simply put together a company and sold it for a profit.
I do believe that he still owns the facility and I would cautiously speculate that HPGS will be renting it from him
I'm going to gamble a little bit more at this level. Will pick some up tomorrow and will be prepared to average down if it hits the 12-14 range.
It's been a brutal few months in the market!! GG and my physical gold and silver holdings are the only things working, at the moment.
GLTA
Where did you find that info?
I'm not sure where the bottom will be. I was feeling pretty good when I bought added some shares in the upper teens.
If it drops to 12's I'll load up pretty good there. I won't anymore until I have time to do some research but I am holding what I have. I am not overly worried about holding the position at this point.
I'm going to have to definitely look more into the acquisition!
I've been pretty hooked up with some natural gas compressor emission issues. I haven't a lot of time to check on the markets. Have one more engine in the Jonah Field of WY to pull samples from tomorrow then I'm heading home for a couple weeks (hopefully).
I picked up a few this morning but could have gotten them cheaper! Just my luck but I'll hold firm for awhile.
I'm going to grab a small block this morning but am hesitant to get too carried away. I need to do a little research in what caused it to run backwards so hard.
Either way, I'll hold the shares I have for awhile. good luck!
I haven't seen that documentary. I'll check it out.
I know of a few guys that work as consultants on projects and make $1000+ a day. They usually have to be available 6-7 days a week until the projects are complete. Some make closer to $2K a day.
Those consultants have years and years of hands on field experience. Generally they work well with the engineer types that have the educational knowledge but lack the field experience.
I'll have to check on the gas bits under ground being controlled by satellite. That would be interesting. In North Dakota they are going 10,000+ ft deep and then go horizontal. Crazy at how it has all evolved!
I'm sure going to be watching a little closer this morning!!!
I'm from the Gillette area but I have family in Billings. My Mom has a house on the Yellowstone River. It never flooded but the Blue Creek area sure did.
The water came right up to the lawn but never into the house. Lucky.
I was up over the Big Horn Mountain yesterday (Sheridan to Cody) and it looks like the majority of the melting has slowed.
Today- OUCH!! Just checked in today and sure wasn't a "minor retraction" lol Didn't see it coming at all. I figured that it could fall back to the $20-21 range but not what it did today (especially in one day).
Depending on what happens in the morning, I may try to pick up a couple small blocks.
I've worked around a few wells. For awhile I worked around some pipeline projects and was involved in 2 amine plants in the Powder River Basin.
Currently am involved in upgrading natural gas compressor engine controls and emission systems. Working with newer and older equipment.
Oil and gas can be lucrative but it takes years of experience. Hard work and paying attention does get rewarded.