tag:blogger.com,1999:blog-1527840491496268397.post1302888710165212759..comments2024-03-08T11:20:30.095-07:00Comments on Credit Bubble Stocks: How Good is Chesapeake at Timing Asset Sales ($CHK)Unknownnoreply@blogger.comBlogger2125tag:blogger.com,1999:blog-1527840491496268397.post-77724858437246412742012-08-10T07:19:03.959-07:002012-08-10T07:19:03.959-07:00I think these sales will actually work out well fo...I think these sales will actually work out well for all of the buyers in the long term (Except for Plains, who comletely overpaid for the Haynesville at the top)<br /><br />CNOOC did very well with the Hayneville JV and it looks like the PRB is going to work out.<br /><br />Total has gotten crushed on the Barnett JV, but just came back to JV the Utica. The Barnett should work out once gas comes back.<br /><br />Similarly, the Fayetteville shale should ultimately work out okay for BHP, they take a long-term view.<br /><br />BP should probably give up on the Woodford, but that might turn out to be their best deal of the last decade considering what else they have done (other than their sale of Entrada to Callon for $180MM - a property that was leased by ATPG three years later for $200k).<br /><br />The VPP buyers are hedged, so they should be fine as well.<br /><br />I really don't think CHK "screws" buyers. CHK's assets are so cheap, that they can sell the least desirable ones at 15% IRRs to the buyer and re-invest in their other projects at much higher rates of return. <br /><br />They do seem to be very good at timing things, but like you said, if people are still going to sell to Warren Buffett, they certainly aren't going to give CHK credit for knowing where commodities are going.wildcathttps://www.blogger.com/profile/09025509627073603544noreply@blogger.comtag:blogger.com,1999:blog-1527840491496268397.post-55797783196291740212012-08-09T22:22:33.021-07:002012-08-09T22:22:33.021-07:00My concern is that they get such a reputation of s...My concern is that they get such a reputation of screwing buyers that no one wants to buy from them anymore.<br /><br />Then again, people still sell to Warren Buffet. Go figure.<br /><br />BTW, did you see this <a href="http://money.cnn.com/2012/08/09/news/economy/nuclear-plants-waste/index.htm?iid=HP_LN&hpt=hp_t3" rel="nofollow">"U.S. government said it will stop issuing permits for new nuclear power plants <b>and license extensions for existing facilities</b> until it resolves issues around storing radioactive waste."</a><br /><br />The "waste issue" ain't ever going to be resolved. The enviros won't let it be resolved. And this obviously can all change after the next election, but still... no coal, no nuke. NG keeps looking better & better.<br /><br />Also from the article, "There are 14 reactors awaiting license renewals at the NRC, and an additional 16 reactors awaiting permits for new construction. There are currently 104 operating nuclear reactors at 64 plants across the country."Allan Folzhttps://www.blogger.com/profile/06762674627739423845noreply@blogger.com