Join today and have your say! It’s FREE!

Become a member today, It's free!

We will not release or resell your information to third parties without your permission.
Please Try Again
{{ error }}
By providing my email, I consent to receiving investment related electronic messages from Stockhouse.

or

Sign In

Please Try Again
{{ error }}
Password Hint : {{passwordHint}}
Forgot Password?

or

Please Try Again {{ error }}

Send my password

SUCCESS
An email was sent with password retrieval instructions. Please go to the link in the email message to retrieve your password.

Become a member today, It's free!

We will not release or resell your information to third parties without your permission.
Quote  |  Bullboard  |  News  |  Opinion  |  Profile  |  Peers  |  Filings  |  Financials  |  Options  |  Price History  |  Ratios  |  Ownership  |  Insiders  |  Valuation

Chinook Energy Inc. Common CNKEF



GREY:CNKEF - Post by User

Comment by stockfyon Oct 08, 2018 10:20am
91 Views
Post# 28761735

RE:Growth drivers and why Station 2 will remain above C$2/mcf

RE:Growth drivers and why Station 2 will remain above C$2/mcfHenry Hub is another 5% UP today in the U.S. reaching almost US$3.30 per mmbtu. This is great news for CKE that sells about 1/3 of its natural gas proidcution at Chicago Citygates receiving premium pricing in USD.

That's also great news for CKE's natural gas production sold at Station 2 that will remain above CAD$2.40 once Toronto opens tomorrow. Station 2 closed at CAD$2.45 last Friday.


stockfy wrote: Station 2 price closed at C$2.45 per mcf yesterday. I did the simple math in my previous post and I proved why if Station 2 stays above C$2.20 per mcf for the whole Q4, CKE will generate additional cash of C$1.13 million in Q4 alone and will exit 2018 with zero net debt and cash of about C$0.5 million. 

Based on the latest guidance, CKE's price assumption is just C$1.44 for Q4, the difference with today's Station 2 price is big, it's almost C$1 per mcf.

See also the charts below that explain why Station 2 is not going to return below C$2 per mcf in 2019 and the next years.

LNG Canada alone adds more than 2 Bcf/d demand.

See below the charts with the growth drivers and the projected demand growth from 2019 until 2024 in Canada.

Meanwhile new pipeline projects are added to CKE's core operating area in Aitken Creek and Birley/Umbach like the North Montney pipeline that will be completed in 2019 and Coastal Gaslink for the LNG Canada project that will be completed in 2021: 
 
 
 
 
 
 
 
 
 
 


<< Previous
Bullboard Posts
Next >>