SBOW - I know there has been interest in SWN, so I figured there may be interest in another gas producer. I've been buying shares in SBOW for the past few weeks.
They have a strong position with leading gas wells in the Eagle Ford. This is the old Swift Energy that emerged from bankruptcy and re-branded itself. The changes were more than just brand, as a new management team has taken over and refocused the operations on the core Eagle Ford assets and maintaining cost discipline while increasing production through capital conscious drilling. The results since emergence have been strong, with production growth up over 20% and quarterly EBITDA up over 50% since the beginning of the year. Q4 should be another strong quarter of increased production, as well as increased pricing on their gas, oil and natural gas liquids. They are in the process of selling off their non-core assets which will continue their drive to streamline the operations (those non-core assets represent a large portion of their wells, but less than 10% of their production). I like what I've seen from management so far in terms of execution and I think its only a matter of time before the market recognizes the progress management has made to refocus the business on cost-conscious, return-focused growth. They have a great investor presentation on the website that highlights their business and strategy. If you're interested, this would be the first place to look.
