RE:RE:RE:RE:RE:RE:CRYING Over SPILLED MILK: SU Had BEST 1M Acres Of NG/NGLs
ztransforms173 wrote: Oldnagger - (1/15/2024 3:55:05 PM) RE:RE:RE:RE:CRYING Over SPILLED MILK: SU Had BEST 1M Acres Of NG/NGLs
Well, the industry has come a long way since the days of throwing a package of gunpowder down a well . Fracking has been constantly growing in effectiveness ever since. The real change was in switching from verical wells to horizontal wells , so I would still maintain that few investors realized back in 2013 , the combined effect of these innovations.Look , I once worked for Petcan and would be one of the last to laud them , nevertheless , I would find it difficult to criticize their move back then. Particularly when one looks back at the tremendous value destruction that the entire nat gas industry had subsequently experienced
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- NOT BUYING into this for one minute
- the Canadian natural gas industry in 2013 KNEW that NG was the NEXT BIG THING SINCE SLICED BREAD {or SHOULD OF KNOWN IF they were COMPETENT ENOUGH}
* the US ELECTRIC UTILITIES were MOVING to NATURAL GAS from COAL-FIRED GENERATION due to BOTH IT BEING CHEAPER and LESS CARBON INTENSITY
- so the WRITING was ON THE WALL that NG would be a STRONG PILLAR of ELECTRIC GENERATION
- YES, SHALE FRACKING LED to an ENORMOUS SURPLUS and BOTTOM FEED PRICING but that does NOT MEAN that your NG RESERVES are PERISHABLE and UNWANTED
- EVERYBODY in the shale industry KNEW that that FRACKING had a VERY HIGH DECLINE RATE so in the MEDIUM TERM, the NG companies had to GRIN and BEAR IT until SUPPLY/DEMAND BALANCE came back to a LEVEL PLAYING FIELD
- SO NO, Suncor Energy MADE a GIGANTIC SELF-INFLICTED ERROR {by SELLING the NG assets in 2013} that DESTROYED TREMENDOUS SHAREHOLDER VALUE
z173
I need to both agree and disagree with you.
Yes , the nat gas drillers piled up large quantities of pdp reserves and de-risked many future drilling locations. Combined with the infrastructure investments , this has made many nat gas companies worth multiples of their present market value .
Yet, they have utterly failed to exploit their worth or otherwise reward their shareholders with the value of their investments. For this reason companies are still able to acquire the small producers and even the larger producers for a pittance.
So it is my contention that nat gas producers can still be acquired at very low cost compared to their original invested capital. And it is on that basis that I beg to differ
Boy , do I ever wish that ir wasn't so !!