Painted Pony Pete Ltd PDPYF

RE:RE:RE:RE:RE:Clockdick

[jerrybe]

The whole sector is still caught in a down draft. 

I own many of the producers mentioned: AAV, DEE, PPY, etc.

AAV has a very low cost structure. It is their main advantage. Their wells have outperformed significantly their target output. They are now building the infrastructure to expand their sales significantly. Lots of CAPEX needed but they are less dependent on LNG it seems and at the end of the day, will own more infrastructure than PPY, which has teamed up with AltaGas. Different business models for the processing of the gas.

PPY has a formidable land base. Obviously, the current pricing environment is terrible. I think 2015 will be a bad year profit-wise for all firms involved. We need LNG to get up and going in the US and later in Canada for NG prices to rise to $4 sustainably.

What we know is that these firms can grow a lot with the land they own over the long run. The key is to accumulate for the long term on market weakness. As to whether we will hit $7, $6, $5 before we hit $10 is anybody's guess. Cost averaging over time makes sense once you have chosen the winners. I have been cost averaging PPY and AAV for the past two years and will continue to do so.

GLTA!