hey folks stuck under another foot and a half of snow in central ab today so a few posits while i wait for the beer store to open.
was out at drayton valley/pembina yesterday.the amount of new pipe,road,and power is significant over last year.busy busy.some companys hit dusters niton/carrot creek area over the winter-some hit.hyx is tying in a well.pinecliff (v.pne)just bought some stuff out there so the right spots are in demand.
a read of pinecliffs' financials sheds a little light on the over all picture re netbacks(and honest reporting i might add)in the area.they admit that they enjoy preferential treatment from velvet(one of the local plants)for their liquids so goes to show that others do not(and that's a province wide issue).coupled with the highest electricity rates in ab over the winter in 20 years(adj for inflation)the producer can get hammered.to that extent i agree with a previous poster about new investors waiting on the #s-the proof is in the pudding so to speak and the good co.s will bear out but everybodys watching.good oil success and no malarky about operational issues/oops i-forgot to mention the decline rate-and hyx will do well.
i don't know how hyx is tied in down south-the right pipe is everything for your price re oil.not everyone is taking a 30 dollar hit off wti(light oil or not).niton area is stone's throw from kinder-morgan to the coast for the right product.btw-km is starting public hearings in 2 months or so to finish twinning their line and cn/cp are shipping oil by rail like crazy.i expect that by summer this dis-connect on oil prices in continent will start to smarten up.
so my thoughts on the future?
if hyx wants to be bought(they might not be ready yet) then a valuation is tough.the 10 plus m in wts at $2 is a factor for a bunch of different reasons(imo).i can see pengrowth picking up everything except niton and maybe hyx goes from there aka crocotta.the annuals and the state of the market this spring are going to decide.
oh-eliot int. filed to sell half their holdings in hyx so might be some pressure there or coming for sp.i don't read anything into that except they need to do their own thing and not a reflection on hyx as a company.
ok-grader just went by so i can get out now and i have to patch the canoe for next week.
happy easter all and good luck and stay well.