RE:RE:RE:Future plans to send 40% of production to Henry Hub they plan to diversify 40% of their DRY gas to US markets. isn't their dry gas volume in 2019 going to be 528 mmcf/d ? 88% / 600 mmcf/d
They did not say they plan to ship 40% to Henry Hub. they said they will HEDGE their NYMEX exposure at HH prices.
Yasch22 wrote: To clarify further:
PEY's capex per mcfe, with capex at $250m, = $0.70
instead of last year's $1.45/mcfe with capex at $521m.
Opex of $0.82/mcfe changes to somewhere between $1.68 and $1.73 with the replacement of AECO by Henry Hub transportation costs. I go with the higher number.
Total opex of $1.73 + capex of $0.70 = $2.43/mcf.
If HH stabilizes at $2.85 US (= $3.72 CDN), Peyto would be making $1.29/mcf.
Peyto has already committed to shipping a grand total of 2.14m mmbtu to NYMEX-Henry Hub in 2019 (page 8 of Press Release). That's 5,863/day, or close to 1% of expected production in 2018 & 2019. In fact, I'm wondering if that's the calculation that was used to determine this odd amount: I mean, where Peyto's traders literally committed to a shipment 1% of expected production in the present context.
Another possibility is that 2,140,000 mmbtu was the total amount currently available for Peyto to secure under a firm contract from Henry Hub.