RE:It's a Sell MrT2020 - (2/6/2018 10:46:20 AM) It's a Sell This is not going to 6 ever ! Nova Aeco is going negative this summer . Alberta is having the coldest winter in years . Demand is strong , and they still can't put a dent in storage , so prices are going lower . Advantage is still drilling.... why ? Well that's how a stock drops 50 percent over night . Do not buy !!
Why is AAV drilling?? Decline rates, duh ...
If every cdn NG producer stopped drilling, the country would freeze to death in about three years....
AAV is one of, if not the, lowest net cash cost producer, if I recall, their marginal barrel production cost is something like $0.76/mcfe or somewhere in that ballpark. With AECO at near $2 it would make no sense for them to turn the taps off - they're still making positive cash flow at these prices, even at spot, never mind hedged...