new broker report. buy recommendation, page-4

Guess what?

IMO there will be:

1. Higher costs for drilling - if they haven't got firm contracts already they are going to find that rigs are short and costs will be up by another 20 - 25%.

2. Delays will occur and drive costs higher. Cash flow will be delayed on completed wells.

3. Storms will cause shut-ins and repair work will cost big bucks.

4. NG prices are going to fall between now and the beginning of summer thus reducing cash flow. Wells will not be completed so as to capture the high season summer prices...again.

So bases upon the above, I think that PSA will be SHORT of funds and the CF forecast is too optomistic.