Plains Exploration - Value Destruction in the Haynesville
My latest Seeking Alpha article:
Plains weighed the decision to purchase this Haynesville property against the opportunity to repurchase shares that management believed were attractively valued. Plains was very proud of its disciplined approach in the past and its avoidance of chasing the latest hot play. And after deciding to go forward with this acquisition Plains funded it by borrowing money.
As it turns out it was a decision to make a major purchase of natural gas assets at the very top of the market for the hot new Haynesville play.