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Everything posted by Jauronimo
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I never suggested Pegs sold drilling technology like you refuted for some reason and I haven't suggested that he doesn't understand the energy industry. My point in this thread has been that none of you fine folks understand what you're talking about when it comes to the industry and specifically SPACs. If the notion is so rational why is wall street avoiding the industry like the plague? I guess they just don't like making money. I've been hearing about how undervalued the whole space is for the past 3 years and how commodity prices are bouncing back next year but its been a slow grind lower every year. Even among your best in class companies like XOM, PSX, CVX. Blue chip service companies like SLB and HAL are at 20 year lows. And this was all before COVID happened too. Anyone remember negative prices on crude futures earlier this year? The Saudis pivoting their whole economy away from oil production. Peak Oil supply is dead, now its Peak Demand and many think we are passed that point. Maybe we will this big shakeout of shale producers and commodity prices will soar again due to declining production. I doubt it. The U.S. has doubled its oil and gas production in the last 5 years, Qatar left OPEC to produce gas at will, shale technology has made supply of what we can economically produce much greater. Demand for gasoline and diesel, which is 40% of the demand for crude, is tepid to down. The developed world has pledged to go 100% EVs in the next 10 to 20 years so I don't see that improving much. Battery technology is already here to move away from natural gas peaker plants thanks to Tesla. Petrochem is the one bright spot I can think of for demand growth in natural gas. Will it be enough to boost commodity prices enough to realize big time EPS from O&G producers??? I don't know. I will watch ERESU and see what they intend to purchase.
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I know what they are targeting since I read the S-1. They specifically mention a focus on PDP assets (as opposed to PDNP, PUD, and probable) as I already mentioned up-thread. I also read the part of the S-1 that says they can invest in anything under the sun as they see fit. If you think PDP is inherently a good investment to the tune of 2x upside then load up on ERESU and wait and see what they ultimately buy. SPACs I have seen make one big splash. They aren't PE funds which have the luxury of 10+ year terms over which to deploy capital. I do not think ERAC is going to be traveling the country "well hunting" for a series of small deals. I am not sure that is even legal under the structure of the vehicle.
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I work in transaction services in the energy capital of the world dealing almost exclusively with clients in the energy industry. But thank you for clarifying the tax structure of a transaction for me while ignoring the financing side of the deal. Also, thank you for clarifying what acreage and leasehold rights are vs barrels of produced crude. I thought Pegula was just going around buying warehouses full of gas tanks and barrels of oil!! By the way, depending on the formation wells produce oil, gas, gas liquids, and some other less useful ***** all at the same time! Who knew?
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How? That is the meaning of distressed and their prospectus says they are looking at distressed companies. Also, unless they are buying a company worth $300 million or less, debt will be part of the basic deal finance. They might buy a company with zero debt and day 1 lever it up significantly. Their prospectus states they are looking for E&P companies with PDP assets and little value ascribed to undeveloped or speculative acreage. They are also looking to invest in companies which are distressed or have not had access to capital from Wall Street. It also reads that they may not even make an acquisition in the energy space. Basically, an investment in ERESU like any SPAC is a bet on their management team that in 24 months they will find an attractive deal and close and a favorable price. Stop telling us about their strategy like its written in stone. What does this have anything to do with the post you quoted? Right, because wells produce oil or gas exclusively and not both and no one in the industry uses the term "oil and gas".
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What if the distressed companies sell all their valuable assets but keep their debt for reasons?
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So is Jim Hackett. https://www.chron.com/business/energy/article/Bankrupt-Alta-Mesa-assets-sold-for-320M-15013022.php ok...Clearly I know what a blank check company is. What was your point that share price was "down to $10"?
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Par is $10. Its a special purpose acquisition company (SPAC). They formed a public company with the stated purpose of acquiring or merging with a company in the energy space. Pegs has 2 years to make a deal or return everyone's capital. Every SPAC initially trades at $10 and there is little share price movement until deal is rumored or definitive agreement is in place. Pegula made his billions buying oil and has producing acreage and developing this acreage. Raising capital, assessing investments, and closing deals is a different sport.
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Best Casino Buffets in the Area!
Jauronimo replied to Halloween Land's topic in Off the Wall Archives
Never been drunk, married, and spending your free time railing the buffet lines?!?! Sounds like you're doing your 20s all wrong. What do your 30s hold? Shuffleboard, high-waisted pants, and early bird specials? -
In Honor of National Chicken Wing Day - Drums or Flats?
Jauronimo replied to ChevyVanMiller's topic in Off the Wall Archives
This is the way. I like both but prefer drums since theres usually some loose flapping skin at the end of the drum which adds extra crunchy texture. The girl prefers flats and we always order too much so it works out perfectly. -
ESPN: The NFL's Best Offenses per Personnel Grouping
Jauronimo replied to DrDawkinstein's topic in The Stadium Wall Archives
I think he will be a solid fantasy contributor. He will catch more balls than Moss and rack up more yardage. Moss will take the goal line carries but Allen takes much of that work anyway. -
ESPN: The NFL's Best Offenses per Personnel Grouping
Jauronimo replied to DrDawkinstein's topic in The Stadium Wall Archives
I don't think there is a true starting job on this squad but I wouldnt be surprised if Moss is seeing 50% of the touches by week 4. -
I don't read the obits or waste time with local newspapers. Enjoy your print subscription to the Buffalo News.
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Whats up with the parentheses after certain names? Maxwell (Meghan) and Lewis (Mary). Is half of this woman's family transgendered?
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Is he deaf?
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Jim Kelly's late son.
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I'm sure any corporation would value the opportunity to credit check 60,000 people to make sure payments will be made on time as opposed to a single entity with meaningful cash flow generation. Kinda makes you wonder why naming rights aren't crowd sourced more often. I would love to watch games at Stadium McStadiumFace Field.
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NHL welcomes the Seattle ....Kraken!
Jauronimo replied to YoloinOhio's topic in Off the Wall Archives
I really thought the Rain City B@#$ Pigeons was going to be the choice. -
Fixed it for ya ?
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Charges against Ed Oliver dismissed
Jauronimo replied to FluffHead's topic in The Stadium Wall Archives
I don't think you need OJ's Dream Team to get you off when the blood results are negative for everything on a DWI charge.- 331 replies
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NFL will allow social justice decals on helmets
Jauronimo replied to Greg S's topic in The Stadium Wall Archives
A no knock warrant the primary target of which was already in police custody. As I understand it, no knock warrants are highly unusual for what were believed to be low level drug dealers by the Louisville police. But apparently they needed a no knock warrant to prevent Taylor from destroying drug evidence or records relating to drug sales. Kinda makes you wonder how they got those warrants especially since the post office concluded the packages the primary suspect had received at Breonna Taylor's home were not suspicious. They didn't find anything in her home so all is well that ends well. https://www.whas11.com/article/news/local/breonna-taylor-lawyers-police-lied-about-search-time-and-arrest-of-main-suspect-in-narcotics-investigation/417-3f4fa77a-c1c8-44fa-ab57-be187dc750c4 https://www.usatoday.com/story/news/factcheck/2020/06/30/fact-check-police-had-no-knock-warrant-breonna-taylor-apartment/3235029001/ -
https://www.bloomberg.com/news/articles/2019-04-10/permian-basin-is-flaring-more-gas-than-texas-residents-use-daily
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No clue as to the potential for commodity price increases. We flare enough natural gas in Texas everyday to power the whole state since the infrastructure doesnt exist to get the gas to market. There were negative spot prices in Waha not long ago. Yes, you understand that correctly, they would pay you to come take the stuff away from them after hitting flaring limits.