RE:RE:RE:FlatVery good post oilpig...stock market is very weak.
Yangarra would be better off in a 90 dollar and 5 dollar aeco then the elevated prices right now.
YGR could thrive at that comoddity price even and it would solve alot of future problems.
At 5 dollars or lower I don think companies overdrill so hard in alberta for ng but at 7 dollars companies will start targeting the more gassy montney wells with less liquids as well, dry montey boom...same with duvernay ng targeted wells.
I am confident YGR can get the debt paid down alot by fall....but current commodity prices of highoil and high ng are more of a reason YGR should delay a divy and pay down debt even more....
The longer aeco is over 7.00 dollars.....the more the risk of over supply by august. Very easy to tell ng production is increasing month to month in alberta and maintenance season is almost over...lots of gas plants turn arounds happen in March to May.
Every company in alberta has such economic incentive to increase ng production rigjht now.
If I become a YGR shareholoder and I may soon, I like YGR, I would hope they get debt to 100-120m before considering a divy....caution is better.
Getting debt down to 160 and paying a divy sounds so risky to me...think need to run things more cautious and run debt even lower.
YGR is in a good spot, just needs too keep executing on the drill program..so far so good in 2022.
Oilpig1 wrote: Keep in mind the overall stock market is very weak. Staying flat, although disappointing, is actually doing good right now. This is actually the only company i am comfortable holding a few days in this market. I look for new 52 week highs with 2X RVOL, and i only find 1 or 2 companies a day. Very weak market.