Wednesday, 22 October 2014
Last updated 9 hours ago
Nov 5 2012 | 10:05am ET
Philip Falcone is betting on natural gas.
Harbinger Group, which is controlled by Falcone's hedge fund, has agreed to pay Exco Resources $373 million for a stake in U.S. natural gas fields.
“This deal will create long-term value by anchoring our new energy operating business with a long-duration gas asset at a time when natural gas is trading near historically low levels,” Harbinger Group President Omar Asali said in the statement.
Falcone, who put his wireless internet venture LightSquared into bankruptcy protection earlier this year, apparently likes the odds for a rebound in the natural gas industry.
Under the terms of the deal, Harbinger Group will get roughly 75% of a partnership with Exco. Bloomberg, citing a person with knowledge fo the deal, reports that because the partnership will take on debt, Exco will get also $597.5 million of cash.
The Exco assets in which Falcone is investing include conventional natural gas wells (as opposed to 'unconventional' wells, i.e. those employing techniques like hydraulic fracking) in West Texas, East Texas and Northern Lousiana. The fields involved comprise 520 billion cubic feet equivalent of estimated proved reserves and are about 84% gas, according to the Harbinger Group statement.
Sep 22 2014 | 4:15pm ET
"I tell people that everybody likes good news and so if you have good performance that’s wonderful,” explains Mike McKitish of Peddie School's endowment, “but it’s the people that want to talk about the bad news or where they drifted and how they came back and how they stayed to their discipline…” that he wants to hear from. Read more…
Most traders agree that proper risk management is the key to successful trading. However, many traders depend on the deeply flawed measure of standard deviation as a benchmark of risk. Here we put it ...