Haircuts all around....I am still stiing out on energy stocks...I don't see any rush to get into any energy stocks this week with Fed rate annoucement..I mean the decision could go either way...a 25 points increase or nothing. That decision moves oil fom 70 to 65 or lower depending what happens.
I am really tempted to buy when I see 1.70 for Ygr though. Oil energy stock for me that even tempts. Other stuff like I like is still way to high in share price.
I also am backing off for time being as once I make decision to buy any YGR position, I know I will be averaging down like an animal if it falls further. It will get messy and stressful.
My prior post got deleted on this because I was reported for swearing...but YGR should whether storm of 2-3 months of really shaky energy prices.
I mean Inplay oil and Petrus financials sealed that for me, look at their per well costs on drilling and compeleting. Petrus looks to be over 5m per well if my math is right. Inplay looks like a high number too which is odd as they had old priarie strorm lease to drill on.
I dont think companies will FCF well if they do wells near 5m in a 60-70 wti band.
Being able to still drill during a 2-4 months of low energy prices period are companies I want to be in if I have to deal with that experience.
YGR does things incredibiliy cheap...32 wells drilled and 96.271m spent on drilling and compeltions...and only 112m in equipment. Any of you can look for yourself...that destroys what any other public cardium is doing for costs. YGR doesnt have pressure to hit gushers on every well...just steady good.
In a 60-70 wti band, companies really need to hit 40000 barrels oil oil in first 6 months if well is costing 4.5-5.5m.
I like fact YGR is economic still at 60-70 oil.