Buzz- I was disappointed at first when I saw the earnings for NGAS but it makes sense when you think about it.....with the increased number of wells they are drilling...especially since the 1st qtr of 2003, drilling costs have to go up.
I spoke to the CFO about a month ago. When I asked him why doesn't the company keep more of each well ( ie assume more of the upfront drilling costs in order to keep more of the revenues), he said they were doing that which would definitely increase their costs in the short term but increase their profitability in the long term.
If you are thinking Natural Gas is a good long term hold you may want to check out SJT. I own SJT and I also have it in my son's college IRA.
Here is a snippet from last news release: "SJT has a royalty interest in natural gas properties in New Mexico; the company doesn't even do the drilling. The company has 20 years of gas reserves in the ground producing at 2004 levels, and Slothower thinks the stock could trade in the high $40's to low $50's."
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