MR

Montage Resources Corp

Energy


Presented:07/16/2019
Price:$4.48
Cap:$0.16B
Current Price:$5.36
Cap:$0.19B

Presented

Date07/16/2019
Price$4.48
Market Cap$0.16B
Ent Value$1.02B
P/E Ratio8.19x
Book Value$26.62
Div Yield0%
Shares O/S35.62M
Ave Daily Vol369,523
Short Int4.48%

Current

Price$5.36
Market Cap$0.19B
Montage Resources Corp. is an exploration and production company, which engages acquisition and development of oil and natural gas properties in Appalachian Basin. Its properties include Utica Shale and Marcellus Shale. The company was founded on February 13, 2014 and is headquartered in Irving, TX.

Montage Resources Corp (MR) – Short 

Publicly traded companies mentioned herein: Montage Resources Corp (MR)

Highlights

The presenter is short shares of Montage Resources Corp (MR), the E&P company that drills for natural gas primarily in the high-cost Utica Shale as well as in the Marcellus Shale. The cost of production issue in Utica is well-established in the market and, in his opinion, will eventually cause the company to go bankrupt. More recently, however, Blue Ridge Mountain Resources and Eclipse Resources Corporation merged to create the proforma MR in a deal that closed on February 28, 2019. Negative market sentiment, which the presenter attributes to the evident weakness of the two businesses, has caused the already small company’s market cap to shrink even further; share prices have fallen from ~$17 at the time of the deal closing to the current ~$4.50. Without strong alternative options, MR will continue burning cash and run out of cash by the end of 2020 without the ability to take on additional debt.

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