Director Bernard Lambilliotte purchased 50,000 shares of Lonestar Resources US Inc. (LONE, Financial) for $5 per share on April 13, according to SEC filings.
Lambilliotte owns 281,441 shares of Lonestar Resources.
Headquartered in Fort Worth, Texas, Lonestar Resources is an oil and natural gas company focused on the acquisition, development and production of unconventional oil and natural gas properties.
The company is focused on the development, production and acquisition of unconventional oil, natural gas liquids (NGLs) and natural gas properties in the Eagle Ford Shale in Texas where it anticipates that it will spend 95% of its capital for the next several years on its leasehold that currently exceeds 30,000 net acres.
It had accumulated approximately 41,274 gross (34,170 net) acres in crude oil and condensate windows in the Eagle Ford Shale in Texas as of Dec. 31, 2016.
It is conducting resource evaluation on approximately 44,084 gross acres in the West Poplar area of the Bakken-Three Forks trend in Roosevelt County, Montana. Its properties in Eagle Ford Shale Trend-Western Region include Asherton, Beall Ranch, Burns Ranch Area and Horned Frog.
The company's newest wells are in southern Gonzales County property in Eagle Ford Shale Trend-Central Region and Brazos and Robertson counties in Eagle Ford Shale Trend-Eastern Region. It has leased approximately 1,450 gross acres in its Cyclone project area.
Lonestar Resources has a market cap of $112.45 million, an enterprise value of $312.32 million, a price-book (P/B) ratio of 0.66, a price-sales (P/S) ratio of 1.01, a current ratio of 0.51 and a quick ratio of 0.51.
According to GuruFocus, the company has a 3 of 10 financial strength rating with a cash-debt ratio of 0.03 and an equity-asset ratio of 0.36. Its Altman Z-Score of 0.29 indicates it is facing some sort of financial distress and could potentially file for bankruptcy within the next two years.
The company has a 3 of 10 profitability and growth rating. It has an operating margin of -132.46%, a net margin of -167.96%, a return on assets (ROA) of -27.17% and a return on capital (ROC) Joel Greenblatt (Trades, Portfolio) of -15.55%.
It is noteworthy that Leucadia National (Trades, Portfolio) and HOTCHIS & WILEY added to their stakes in Lonestar Resources during the fourth quarter. Since then the company’s market price has plummeted by an estimated -41%.
Disclosure: Author does not own any shares of this company.
Start a free seven-day trial of Premium Membership to GuruFocus.
