RE:RE:RE:RE:RE:RE:RE:Margin calls??So basically the call that prices will retreat is for most positions, not just Peyto.
With all that is going on, first PEY and other gases like CR were held back for quite a while companies like VET trucked on forward.
So the Volcanic pressure has been building in the $10 to $11 range and now at a whopping $14 it has to pull back.????
I don't think unless interest rates and market weakness in general do it to us, bad timing lets say. Also maybe it is sector rotational out of tech etc. and money is finally finding its way here.
There is going to be no let up in production, costs, higher prices realized and low inventories so each quarter is going to be better and better.
The numbers are mainly accounting, we all know most companies can't hedge and call it perfectly so you take your chances with the companies you buy.
Yes, taxes will be much higher as the prices rise, already a known and built in.
With all the LNG exporting keeping pressure on prices and growing, the spread between Europe/ Asia prices to NA prices should lessen as time goes on.
This is a long-term anti Russian sentiment that is now entrenched for at least several years.
Overall production can't increase very much due to supply issues of pipe and everything else in the oil and gas industry with lead times of a year or more. You can't drill, case, or build new gas plants which are hugely important for any new production.
If they do indeed start to build more NG generation plants replacing coal fired plants at some point this will also change the rules similar to what Alberta has been doing.
This is all part and parcel, not just one thing changing.
Remember also the huge depletion rates in the U.S. that constantly need to be replaced also if they ever increase production.
We will get some fluctuation as we always do, it is not fun, but it also depends whether we go to $16 or $18 and then pull back some to move forward again. The move forward may just surprise us all.
Others are not analysing this business as most of us do and thus the rules may change.
Also there could be surprises to the upside as per the recent production numbers from both CR and PEY.