Post by
kavern23 on Jul 09, 2024 7:53pm
Opinion
When I look at the public Canadian energy stock I don't find anything investable as public companies face an issue in my opinion just being public.
example take Westbrick energy a private run company versus Birchcliff.
westbrick management doesn't have to please any uneducated retail shareholder and is run my a majority owner firm think called kkr.
I think in medium term and long Birchcliff should company what westbrick is doing and others.
drill hard right now which westbrick is doing but also shut in production and turn as little as possible right now. Don't be eager to sell ng under 2 bucks let alone aeco under 1 dollar.
Makes more sense to go in debt for drilling versus going in debt to pay a divy.
The bad thing will be the ng companies that scale back drilling right now in order to run divys.
race to drill montney wells for these companies. Don't complete the wells but get them drilled if have a great service and drilling crew.
newsflash that first Canadian lng will be filled at capacity quite fast. Every 6 well pad montney in right area will come on with a lot of gas. Some of these pads will do 3 bcf a month per 6 well pad.
Westbrick faces such different shareholder expectations and "Pulls' versus a Birchcliff that is public.
I think smart strategy is too shut in production on wells that make sense, ie boomers that have been just paid off but are very dry and not much liquid. Let these roll when aeco start to be better in fall.
No company should be in a rush to sell ng at 70 cents.