Greenlight Capital’s David Einhorn says fuzzy math determines oil fracking profits at Pioneer, Stifel doesn’t answer oil well depletion charge
On This Page
- David Einhorn: Pioneer and other frackers producing oil at a loss
- Wall Street sold securities lending oil patch producers money, but David Einhorn charges they lack proper earnings disclosure
- Einhorn key point: "EBITDAX" depletion isn't properly accounted
- Bulk of fracking drilling expenses occur up front
- Stifel strikes back, says PXD generating solid returns and disagrees "on all accounts"
- Stifel doesn't address primary charge regarding depletion, but instead points to lowered production costs on new wells and a $71 oil price hedge
- Stifel reiterates buy on Pioneer, $195 price target, while banks express concern over oil patch loans
This content is exclusively for paying members of Hedge Fund Alpha
Insider Strategies and Letters to Shareholders from the Top Hedge Funds and Maximize Your Portfolio Growth with Hedge Fund Alpha
Don’t have an account?
Subscribe now and get 7 days free!