RE:RE:RE:RE:RE:RE:TD UpgradeIts the combination of cheap debt, extreme fracturing and well technology advancement and liberal pipeline policy that has created this shitstorm.
But hey, cash flows are there, there were extremely busy in Q4-Q1 with their hedging, so they can sleep at night throughout 2019 (natgas 75% hedged fixed), in 2020 and 2021 they are selling some 60% to US markets. So, its not all that bad. With their hedges, its a sit-and-wait.
Darren Gee sits tight with his shares, he rides the cycle as he says. CFO Kathy and the Lechance guy quite recently bought shares, so clearly they see value. The reason why they hedged so much is that they foresaw the current AECO market. Now liquid production is priority which mitigates low Natgas prices.
Appalachian producers like Antero etc they are surely not spending now new wells at HH of 2,50, so prices should recover in H2. Well permits in Appalachian basin has dropped of a cliff, thats positive sign, while storage levels are still low.
the Nacho