Message Font: Serif | Sans-Serif
No. of Recommendations: 0
In this Seeking Alpha article, the author suggests that Petrohawk is currently undervalued, based on the value of its proven reserves. They put the value of the stock at $24 per share:

In a conference call on February 1, management disclosed details of an estimate of some 35 trillion cubic feet equivalent ((tcfe)) of natural gas and oil resource in the Haynesville, Eagle Ford and Bossier shale formations next to Petrohawk’s interest. [...]

Judging by HK’s sale late last year of 1.4 tcfe of Arkansas Fayetteville shale resource to ExxonMobil (XOM) for $650 million, the less developed 35 tcfe might be worth perhaps $15 billion. Investors can keep that in mind as speculative upside to our revised present value of $10.6 billion, tied to proven reserves and next twelve months cash flow.
Print the post  


When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.