Post by
ztransforms173 on May 07, 2024 10:41am
CC: CFO: Does NOT 'SEE' A MASSIVE INPUT COST ESCALATION
- this is WHAT I AM WORRIED ABOUT with the STARTUP of SHELL LNG Canada in 2025
- that is WHY I WANT THEM TO BUY an NGLs-HEAVY natural gas producer
- according to Ryan Kubik, there is PLENTY of NG available at CHEAP PRICES going forward so there is NO URGENCY to HEDGE
- CONDENSATE prices in Texas {which meet 50% of MEG's NEEDS} are STRUCTURALLY WEAK and a VERY GOOD VALUE to MEG so NO URGENCY to HEDGE
- MEG is DRILLING TWO WELL PADS (with 2 DRILLING RIGS) this year which is DOUBLE the NORMAL PROCESS of previous years due to STRINGENT COST CONTROL in light of PRIORITY to DEBT REDUCTION
* as a result, SOR went UP due to LOWER BOP and more STEAM was DIVERTED to the NEW NON-PRODUCING wells to PRE-STEAM THEM before BOP
* SOR will TREND DOWN as the new wells START PRODUCING bitumen {usually NINE MONTHS but 'could' be FASTER due to UNDERGROUND AI-CONTROLLED AUTOMATED STEAMING EQUIPMENT}
- 2025 will be another BIG TURNAROUND year and MEG is ALREADY DILIGENTLY PLANNING to MINIMIZE the BOP LOSS by PRE-ORDERING the REQUIRED PARTS and EQUIPMENT {to AVOID supply-side issues} and SCHEDULING the CONTRACTOR and INTERNAL EMPLOYEE RESOURCES for getting the JOB DONE
* remember that in 2022, there were SKILLED LABOR SHORTAGES and MEG had to EXTEND parts of the TURNAROUND from May/June into August
z173