you posts are factually incorrect. the Georgetown acreage is not inc. in SEA's EF interests - please re-read the release. And as for the wet gas commentary, again, do some research: Choke Canyon production averages +80% by volume. Dimmit County will be ~60% with the delta being gas. these are not "WET-GAS" assets as you assert.
the comparison with LNR is frankly laughable: LNR has an EV of $650m vs SEA's $700m and yet SEA will exit the year at least 40% ahead of LNR in terms of production and boasts nearly twice the 3P reserves. Note that the EF component of the reserves is as at Dec 31 '13 at which point, represented only ~9,000 net acres. I'd suggest that the reserves growth based purely on the new Choke Canyon acqusition as well as the development through the CY 14 should provide significant reserves growth to preserve the similar differential.
Further to which, SEA's balance sheet is remarkably healthier. And earnings are significantly stronger at +US$150-170m this year growing to +US$220m next year.
I think LNR management are very strong but this is question of relative value and at this time, there is something amiss; either LNR is grossly overvalued or SEA grossly undervalued. My view is that is is a little from column A etc.
As for 'Value Diggers' invaluable insights - this some of the worst journalism I've seen. Comparing LNR to such luminaries as AZZ and SSN is farcical and from my perspective does nothing more that undermine his credibility.
smells like a ramp to me to be perfectly honest... but for what gain?
SEA Price at posting:
$1.39 Sentiment: Buy Disclosure: Held
