RE:At what point should Wanklyn be turfed?AECO for June 2023 is sitting at $2.09 CDN/GJ. That is well below PIPE's $3.00 CDN/GJ guidance which was already reduced from $4.00 CDN/GJ. That is why PIPE is being punished. Hard to run a company when the primary commodity you sell is bringing in less than half the cash it was bringing in last year at this time. I do not think an unusually warm winter is a reason to hang Wanklyn.
The return of El Nio has already started. This should bring a more typical or colder than normal winter to eastern Canada and the NE U.S. The natural gas draw down will help boost PIPE's share price significantly.
By April 2023, the Company will have increased its producing well count by 14 since December 31, 2022.
PIPE's Q1 drilling results look good. They were already at 42% liquids in Q4. The new condensate rich wells should bump that number higher. I think investors will soon realize that things are not that bad when the Q1 results are released in a couple of weeks.
I do not see PIPE's undervalued assets being sold or merged with anyone, anytime soon. The majority of PIPE's shares are held by a few owners with deep pockets and lots of patience. I believe they are prepared to wait for much better times before doing anything. I think $2.50 is a good buying opportunity. There might be an even better opportunity in the next couple of weeks if AECO heads lower before the Q1 results are released.
PIPE's debt is manageable. I plan to average down. The weather will get cold again. It always does.