$1.99 a Share - Really?Ridiculous that a share in this solid natural gas company is trading at the price of a bag of Lowes yard dirt, btax.
Not much drilling going on in CDA and expect things to tighten up further as the industry starts budget planning for 2021. "Canada’s fleet of active drilling rigs remains at 52 this week according to data from the Canadian Association of Oilwell Drilling Contractors. Total drilling count for the week of August 31 is 52, 19 of which are drilling for oil and 31 for natural gas. Drilling activity by province as of September 4 is 32 in Alberta, 14 in British Columbia, and 5 in Saskatchewan."
Although they are partially hedged, (70% nat gas for Q3) some come off at end of Q3, and they have good exposure to various markets and T service locked up. "AAV has up to 48 mmcfd of Empress capacity and 54 mmcfd of p/l capacity to Dawn (August Presentation AAV)."
YOY Comps. September 3, 2020 and (Sept. 3, 2019) for nat gas prices in $CDN mmbtu*:
AECO Spot: $2.79; (2019 was $0.82); Up 240%
AECO 12 mo avg futures $2.95 (2019 was $1.79); Up 64%
Alliance $5.28; (2019 was $.71); Up 643%
Dawn $2.78; (2019 was $2.68); Up 3.7%
* Source PSAC
Most companies still working on debt reduction with lenders. In many cases, lenders reminding their borrowers how tight they are by giving rolling 30 day reprieves for reviews. The banks hold the cards right now, which is not a good situation for industry. AAV proactively reduced their debt with a partial Glacier gas plant sale which was a great move. If their SP moved up they could acquire as assets or Corps as all are going dirt cheap right now due to the lender squeeze.