RE:RE:RE:Div hike or Debt reduction?houbahop wrote: Once again, we see how natural gas producers are flooding the markets with Natgas.
They increase the number of rigs in operation, produce more gas to benefit from the short term high prices and by over supplying the markets, they reduce the value of the previous wells drilled and operating.
The result will bring natgas price to under $3, and wipe out billions of shareholder value.
This is how stupid the industry works.
It is not he first time happening and big investors who got burnt want to be out.
Looking bigger picture.
Oversupply will be a short-term NA problem, this is really the early stages of NA producers displacing Russian producers. IMO
Germany moving BASF to Louisiana.
Early stages... fellas
https://report.basf.com/2021/en/managements-report/forecast/outlook/investments.html Just the beginning.
My concern has always been Liberal Elites influencing banks to stop lending to Canadian O&G co's.
When it's fashionable to announce that your bank doesn't do business with O&G, they all jump on that trend. All about how virtuous your corporation is these days.
So when our O&G developers can cut ties with the big banks, they will have the freedom and independence to blaze their own trail while avoiding a significant risk of govt's financial-interference.