RE:AECO above $6! WTI and AECO are the shiny objects attracting attention but rerating of impairments will result in a resumption of positive equity. High commodity prices are only opportunity for success. Capital allocation and execution of guidance will determine it.
Journey needs to repair its balance sheet, carefully allocate capital, monetize non- core assets and maximize production enhancements before turning its attention to drilling new wells. Drilling capacity is limited by the availability of experienced crews and, anyone familiar with the industry is aware of the operating costs associated with training green crews. This capacity limitation will drive up drilling costs in parallel with commodity prices.