Ann: Sixth Eagle Ford Well Spud, page-28

Whisky, your cautionary example is invaluable. At this stage in the proceedings though, I see the POO being more critical for HK.
Granted, production nets are immediately affected by price variables, but I think an important distinction needs to be made between the investment quality of AKK as a result of growth catalysts, as opposed to the appeal of its bottom line, at least until the latter overtakes the former as a likely source of SP upside.

If a falling POO pressurises debt terms, they can be mitigated within the drawdown timetable. For me, AKK 'still' has no value as a present or even near term net profit story. Its all in the growth trajectory, reserves upgrade and perversely, (in comparison to HK) the economy of 'scale' or lack thereof.

In a volatile commodity market, and with their ballooning debt levels, HK appear the riskier play. I know which stock I'd rather hold.