GREY:CEQXF - Post by User
Post by
exprohibition18on Jan 24, 2020 5:07pm
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Post# 30596861
Key basin!! - Marcellus shakeout continues
Key basin!! - Marcellus shakeout continuesThe largest NG producer in North America is cratering
EQT produces over 4 bcf per day and shed another 7% today!
Credit events/ Insolvency is here for the big guys - CHK 55 cents - equity sliver is tiny relative to 9 billion debt position
Totally unsustainable
Nat gas has yet to respond. It will! Demand is so hot - that even with proliferation of uneconomic supply- the surplus to 5 year average -even with abysmall weather- is a meagre 250 bcf.
When 1 producer in distress- just 1- produces 4 bcf per day - it wont take much on the corp action front from shutins , reduced capex, curtailments etc - to send nat gas skyrocketing
And with broken balance sheets -equity will be hard to come by for the next wells in the marcellus
2.50 nymex wont cut it . Once burned, twice shy. Nat gas is rallying HARD on the next newsflow .
Be it next week or next month- these daily 500 million dollar marcellus equity valuation losses will not persist much longer ( there aint that much left !) and the newsflow will be absolutely needle moving for us 10 bcf per day Aeco producers.
GLTA