MF Article May 21

[kommonsents]

From MF.........     

Multiple Questions Remain Unanswered at This Company

By Tyler Crowe | More Articles | Save For Later
May 21, 2013 | Comments (2)

Companies in the oil and gas space have been posting performances that beat analyst estimates quite often this quarter, and InterOil (NYSE: IOC  ) is part of that growing list. While its recent performance and the company's prospects for exporting LNG to the Asia-Pacific market may sound tempting, there are a couple reasons why you may want to hold off just a little bit longer before making a decision on InterOil.

With so much of the company's success pinned on picking a partner for its LNG export facility, and with founding CEO Phil Mulacek recently retiring, there are still some questions about this company left unanswered. In this video, Fool.com contributor Tyler Crowe details why these lingering questions should offer enough reasons to hold off on InterOil just a little bit longer.

Video at http://www.youtube.com/watch?feature=player_embedded&v=pPP036VPH7c

Article at http://www.fool.com/investing/general/20...compa.aspx

[admin]

The usual semi-fluff from MF, "controversial" company, the stock up on earnings, questions remain about selection of the partner, retirement of Mulacek put cloud over future, Exxon/Oilsearch billions over budget. Nothing we haven't heard before, he does admit it's a promising situation but suggest holding off until the questions are answered, which is ok by me, it's what makes a market. Chandler didn't think holding off is a good idea and I have a feeling he knows more about the situation than MF..

[Movieguy]

Is there any reason why the Exxon plant went billions over budget, but the IOC plant should not? I am not criticizing here. I am asking if there was a factor(s) that caused that plant to go over budget, but it is not the same with IOC's expected plant.

[jft310]

Exxon had lots of issues in the Mts of the Highlands. Literally ran a pipeline up and down several MT ranges. Exxon had issues with Roads, floods, blocked roads, work stoppages. IOC has no Mts to traverse, has roads already and has done proper social mapping that Exxon never did and thus paid the price.

[admin]

Yea, and although this is from memory, I think currency (Kina) appreciation was also an important part. Having said that, Aldorf at Marathon in Equatorial Guinea is still the exception to the rule that these projects have a habit of running over time and over budget, but as JFT points out, IOC is learning from Exxon's mistakes and has easier terrain and a single resource to deal with, rather than five or six in the highlands with Exxon/OilSearch.

[Movieguy]

Excellent and concise. Thanks, jft.

[Spartina]

Exxon has thousands and thousands of land owners to deal with, IOC has a mere 700 or so. Not only has ioc's social mapping and pr been much better and proactive their sheer numbers are much easier to deal with

[jft310]

STP is 100% correct about the Kina (blowout preventer thingie Adam G told us about LOL) also.IOC has done a decent job with hedging to the Kina alas its not easy.

[Getitrt2]

Motley Fool articles for the most part are promotional, incompetent trash. That is especially true for IOC. For them to show up on Yahoo under "Headlines", they must be compensating Yahoo somehow.

[ArtM72]

Trouble with MF is that it is pervasive on the web. It seems like it shows up with every business search bot I use on my iPhone (even when I pay for the app!). Bottom line, I suspect you have to pay for quality, with SHU as the exception proving the rule.