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Crew Energy Inc T.CR

Alternate Symbol(s):  CWEGF

Crew Energy Inc. is a Canada-based natural gas company. The Company’s operations are focused primarily in the Montney in Northeast British Columbia (NEBC). It has primarily been focused on continued Montney development of its liquid’s rich natural gas area at Septimus / West Septimus (Greater Septimus), and its light oil weighted asset at Tower, British Columbia. Its Montney area assets include Septimus / West Septimus, Tower, Groundbirch, Attachie, Oak/Flatrock and Portage and are situated in northeast British Columbia. Its operations include liquid-rich natural gas and light oil production from the siltstone Montney formation. At up to 300 meters thick, the Montney is developed with long-reach horizontal wells, completed with water-based fracture stimulations. It holds a land base of over 264,000 net acres, out of which approximately 225,000 net undeveloped acres in the Montney with condensate, light oil, liquids-rich natural gas and dry gas.


TSX:CR - Post by User

Bullboard Posts
Comment by Runaway1492on May 29, 2020 4:42pm
124 Views
Post# 31089941

RE:debt kills!

RE:debt kills!Debt is termed out for four years and is covenant free. Their land base is situated along three major pipeline routes allowing superior market access to the US, Canads and LNG Canada. The area is Ultra Condensate Rich and provides high heat content gas which sells at a premium. Once the LNG Canada project goes through their land will be much more valuable. They have heavy oil and gas processing infrastructure they could sell if required. Associated gas from US shale has been depressing the price of NG in the market for years is entering structural decline as US shale oil producers will not recover from the pandemic. They were already getting cut off from Capital Markets prior to CV and the Pandemic is expediting their decline. NG use in the US and globally is expected to continue to increase even with renewables because they require base load power due to their intermittent nature. Coupled with increased US LNG exports this should result in a medium-long term increase in NG pricing which will alter the debt to cash flow situation. The Insiders are experienced professionals. For instance, Ryan Shay was an oil and gas related investment banker with Cormark before joining Crew's board. He knows a thing or two about the financial world and has invested heavily in this company at nearly three times the current SP. Banks tend to renew debt to continue earning interest which is the most likely scenario for CR in four years. I don't know why you're even worried about debtnow, tbh, it's so far away and so much can change in the interim. For instance, a change in political leadership in both BC and Federally could be beneficial to Crew. Or a Biden win in November could create competitive disadvantages for US rivals. Most of the risk is priced in at the moment and they have lots of room on their revolver. I sleep well with my shares in Crew.
Bullboard Posts