So LongAs Gas prices and storage remain where they are at I think PMT will do just fine (he wrote with his tongue firmly planted in his cheek)...LOL... I mean with a gas storage business WHO wouldn't LOVE to invest in this company... it's like a license to print $$$... I firmly believe we could and should be trading in the $10.00 range... wait for it... within the next 10 years... that IS of course IF PMT can increase their liquids production by 5% annually ... doesn't sound like much... BUT that works out to a 1.25% increase per reporting 1/4...
NOW the brass tacks... My most recent research indicates that a long leg HZ with a 15 stage frac is running near $4MM/well Given the cash intensive era of liquids production O&G exploration and production is entering WHO here truly believes PMT has the financial wherewithal to:
1.) increase liquids production at a modest 1.25%/qtr
2.) invest in additional liquids rich assets
3.) construct the infrastructure to handle their new liquids production.
head winds to be certain... The GOOD news... at PMT's current share price...surely a Senior producer flush with cash can see some value in PMT as a "Bolt on" suite of assets... Given PMT debt... and the current share price... MAYBE... just maybe... there is some equilibrium that could make a cash + shares deal viable for a company looking to use or create some debt to increase their own net to debt profile...In any case... IN MY humble opinion I think PMT is JUST about ripe enough for the picking...
GLTA it's MY opinion git yer own.