RE:RE:What in blue blazes is going on?This would be the dumbest move in the history of business.
Own the infrastructure all the way down and leave it idle... and then sell it when you are building new plants and have almost all wells paying out within 12 months of drilling.
No. These plants will be full. Peyto will be producing at 800mcf in no time, and with no excess leverage. They are able to recycle cashflow and add production at very attractive rates right now. $10K/bbl & can lock in IRRs of 150% by hedging out the first year production.
The need to deleverage has materially changed. Peyto can use a fraction of it's cashflow toward debt reduction, pay a large dividend and fund a reasonable growth plan funded by organic funds flow. $1.2B with 75K bpd and $1 gas is one thing... $1B by year end with 100K+bpd and $3+ AECO is a completely different story. Growing without the drag of a large dividend and a good futures curve into the backdrop of 5bcf of new export capacity out of NGTL. The story 2-3 years out looks good here.