I am waiting for 10Q to help me understand how they didn't have a big benefit from ngas price spike in Q1. Ngas got to 6.50/mcf in March. It was only for about a month but huge upswing in pricing. Maybe Texas ngas didn't get those prices because they had plenty of ngas supplies???
Anyway SFY produces about 50/50 ngas. Ngas prices went up 26% from Q4 to Q1(they must have lost some to hedging) So how come total revs didn't jump about 13%??? Since they generated 146million bucks a qtr in revs in Q4, that should have caused a plus of $19 million from ngas. Oil and NGL prices and production went down but that much? That's what I'm trying to figure out.
I think they are having trouble getting a fair price for C Louisiana. I think the chances of a Fasken JV are pretty high but they will lose a good percentage of the WI% with the JV but will have less of a capex hit. C Louisiana is fading as a catalyst. If they had gotten $300+ million for that acreage, I think the price would have gotten a nice pop. Chances of a sale are less than 50/50 now. Mgmt is not desperate. I think they will hold for a good price and not sell decent acreage just to generate a sale.
It means capex will continue to be constrained and production will be flat. Fasken JV may help production gains but we have to see the JV terms to determine if it will boost share price.
The value in reserves and acreage is there. SFY just has to excite the market a bit.
News 
Market Data 
Discover 
AI
