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NGAS Shares Drop in Front of Earnings Call

By Armando Duke

Private Equity Fund Of Funds Independent energy company, NGAS Resources, Inc, shares drifted lower Friday in front of its earnings call scheduled for Monday.

( NGAS) is an undervalued company, trading recently below $1.00 a share while its overall liquidation value is probably 4 to 5 times that amount.

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Capital Casebook Equity Aug 7, 2004 (AXcess News) Lexington KY - The Appalachian natural gas producer, NGAS Resources, Inc. (Nasdaq: NGAS) shares dropped 3.5% Friday, closing down 14 cents in the wake of Monday's earnings conference call.Founder and President, Bill Daugherty, whose company until June was named after him, has been "learning the ways of Wall Street", as one oil analyst put it. Daugherty's business has grown through a successful series of financing, the most recent of which netted NGAS $10.5 million and to better reflect the business' strategy, Daugherty has been shifting the business into high gear.

(5) month net earnings and earnings per share include $11.3 million and $0.27, respectively, for the curtailment gain, net of tax, and discrete cumulative tax benefits combined.

Private Investment In Public Jun 1st the Company announced connecting to Duke Energy's pipeline after completing construction on an 8-inch diameter gas gathering pipeline that extends four miles.

FF&P Private Equity provides its clients with the opportunity to invest in the equity of high growth, unquoted companies whose objective is to generate attractive returns through the subsequent listing, or trade sale, of these companies. FF&P Private Equity invests typically â5 million to â25 million of equity per transaction and places particular emphasis on backing commercial managers with a track record in successful execution of business plans and enhancing shareholder value. //www.ffandp. equity.

Equity Mutual Funds The pipeline initially gathered natural gas from 18 wells in NGAS' Straight Creek field. The company said it planned on adding 40 new wells in 2004 to the 26,000 acre field.

Birmingham Contact Equity "This new gathering line extension allows us to access new natural gas markets on Duke Energy's East Tennessee gas system," said Daugherty.While NGAS has shown remarkable growth it has also been limited by its own market, unable to tie into other gas lines that fed larger markets, until now.Advertisement

Private Equity Investment Firm Things changed in February after the Kentucky-based natural gas company announced the closing of a $5.8 million equity capital financing. At the time of that placement NGAS was projecting an additional 140 wells would be drilled.

Complying Deal Equity Funds In early July NGAS announced that it was named the fastest growing public oil and gas company by the Oil & Gas Financial Journal for the fourth quarter ended December 31, 2003. For the comparison period of fourth quarter 2003 verses fourth quarter 2002, NGAS' stockholder equity grew 314% and net income increased 266%, while long-term debt increased only 18%.Now that NGAS is able to sell its production in high-demand markets investors are watching with anticipation to see how the company performed in the last quarter. Judging by the downward pressure seen Friday in the market, some investors are showing disappointment in selling off their position.NGAS Resources, Inc. (NASDAQ: NGAS) closed Friday at $4.04, down 14 cents or 3.35%, on volume of 76,051 shares. The 90-day average daily trading volume was reported to be 144,090 shares. The 52-week hi/lo was reported to be $3.73 to $.700.

Equity Msn Private Wyoming Amongst NGAS Resources peer group, Gasco Energy's (OTCBB: GASE) revenue growth exceeded 373%, verses NGAS' 76.25%. Goodrich Petroleum (NYSE: GDP) lead the pack coming in with 1,800% growth in earnings verses NGAS' -77.97%. Dorechester Minerals was the leader in P/E ratio growth after climbing 260.2%, verses NGAS' 25.73%. While KCS Energy (NYSE: KCS) had the highest marks in Return on Equity with a 100.99% increase verses NGAS' 13.37%.

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