GREY:CEQXF - Post by User
Post by
templetoothon Mar 07, 2016 12:46am
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Post# 24628596
Waiting, waiting...
Waiting, waiting...
In my opinion, the natural gas price at AECO is likely throwing a huge wrench into the otherwise slam-dunk sale of the company at a huge premium over current market. I believe the Thursday AECO was something like $1.28 ; let's face it, at that kind of level there's little chance of a cash deal for Cequence or any other gas heavy company.
I'm still in this for a fair amount of my investible funds, but decided to hedge a bit by shorting some Birchcliff. I have no particular hate for BIR, but I understand all their production is sold at spot rates. Every company with substantial gas production is obviously going to have a disastrous Q1, including Cequence. I just have to think that being somewhat hedged is the rational thing to do. If, as predicted, there's more gas in storage at the end of winter than there was at the beginning, this sets up for a brutal spring-summer for Cdn. gas. Gulp!