Painted Pony Pete Ltd PDPYF

RE:RE:RE:RE:RE:RE:RE:Pony cash costs 2017E and 2018E

[dalerules88]

True. But with their opex at $0.71/mcfe (plus transport), they can meet those commitments because they can get the stuff out of the ground so cheaply.

Let's assume that transport averages say $0.30/mcf (company avg is $0.39 but that includes costs to places like Dawn hub, so way more costly)

with Opex 0.71 and transport est 0.30 = $1.00 INCREMENTAL cash cost to market - so let's say you're selling at AECO spot - you are breaking even at $1.00 - compare that to current Aeco/Stn2 pricing at $2 range, and even at summer prices say $1.20-1.50 - they are still making INCREMENTAL cash flow ....  so no need to cut production, unless say your AECO is sustainably priced below $1.00

so question is, will the average AECO/other markets realized price be less than $1.00 ??
If the answer is yes, then sell now; if the answer is no, then it means PONY will survive the downturn relatively unscathed

IMO