Petrohawk (HK)

Petrohawk Energy Corporation - is an independent energy company and a leader in the exploration and development of shale-based oil and natural gas resources in the U.S., with properties concentrated primarily in and East the Haynesville Shale and Lower Bossier Shale of Northwest Louisiana Texas, the Fayetteville Shale of Central Arkansas, and the Eagle Ford Shale of South Texas.

Bull Ideas:

• Profitable: Yea its always good for a stock to have positive cash flow; Petrohawk is making money on Natural Gas while it is at some All-time lows. It is also still expanding and has increased production.
  
• Possible Buy Out Target: Company Founder has a Past track-record of selling energy companies once production has begun for great profits. Chevron (CHV) has recently acquired, Atlas, a similar size natural gas producer. ConocoPhillips (COP) RoyalDutch Shell and Exxon are beginning to invest in Natural gas through direct investment and acquisitions of regional Energy players. Electrical utilities looking to improve the cost of buying natural gas have begun investing in regional Natural Gas producers.
  
• Expansion of Consumption: One of the reasons Natural Gas prices are at all time lows is that there is more supply than demand. Petrohawk is at an advantage because demand is growing inside of the Haynesville shale allowing Petrohawk to provide NatGas more efficiently by reducing transporting across long pipelines. AEP has recently built a Modern Natural Gas Electrical generator in Shreveport LA. Bossier City LA has installed first of two CNG pump stations for Vehicles. Chesapeake Oil and Gas (CHK) land city vow to move vehicles to CNG consumption
  
• Environmental: Burns cleaner than conventional gasoline. President Obama offers to back Pickens Plan during speech. The reasons go on and on. Its almost impossible to list them all. The famous Billionaire, Investor, Environmental Activist Carl Icahn recently revealed a 7.5% stake in (CHK).
  
• China: OK this is a new one for a lot of people but The United States could actually be an energy exporter! Two companies that I know, Cheniere Energy Partners (NYSE:CQP) of have applications into the US Energy Dept to begin Export of Natural Gas.
  
• Bossier Shale: Don't get the Haynesville shell, and the Bossier Shale confused. (Read My Article)

Bear Ideas:

• Supply & Demand: Supply could continue to expand faster than demand.
• Infrastructure: There is not much room to rapidly expand pipeline transportation, Long-Distance Pipeline transmission increases production cost. LNG and CNG technology expensive and Massive in size and price.
• Nat Gas Stations: Or a lack of have made the switching to CNG impossible except for fleet vehicles in close proximity. There is a chicken and egg argument here: what comes first? (Read my Article)
• Nat Gas Vehicles: not a consumer option. Ford (F) and General Motors (GM) are pursuing development of electrical vehicles. The car companies put up a lot of money developing electrical cars and will therefore stall any other environmentally friendly vehicles from production until they have recovered the cost of these investments.
• Taxes Paid on Diesel will drop resulting in large losses of tax revenue for state and federal transportation budgets as a result of more efficient vehicles reduces government incentives to truly embrace conversion to NATGAS.