Equal Energy Ltd EQU

debeaude

[bakken13]

Agree 100%, except for the statement that I see everyone using;

"NGL pricing will continue to improve and so will NATGAS prices"

 

NGL pricing did not improve, but actually fell in Q3.

US propane stocks remain at all-time highs, although prices have strengthened a bit in the last month.

And US production of propane is 10% above year ago levels.

If drilling for nat gas and NGLs has slowed down, how come production of propane is that much higher?

I agree that one day prices simply must improve, but I see no indication that it will be anytime soon, which is the timeline the company has set out to make some major decisions.

And I don't think operating as an E&P company on the Hunton is part of their plans.

But what do I know? I am just an investor.

[dbeaude]

I am sure you understand that that statement is just an opinion bakken which is based on a degree of research. I think that increased liquids and gas prices will just result in a higher share price over time.

[dbeaude]

I am sure you understand that that statement is just an opinion bakken which is based on a degree of research. I think that increased liquids and gas prices will just result in a higher share price over time.

[bakken13]

With all due respect, "opinions" are worthless. Give me facts, and I will listen intently.

[dbeaude]

bakken here is a fact. They have an enterprise value of $141 million using Friday's closing price. You have to be the judge for yourself if you see value in the stock. How much do you think the Hunton assets are worth depends on your future view and strategy as a potential holder of the stock or as a potential buyer of the company. I already stated that based on my math they can pay a

[bakken13]

In Q2 EQU had $8.49/boe in cash flow netbacks, but that was with 1093 boed of oil included, most of which is now sold. So that drops the netbacks by $7/boe, so we are left with about $1.50/boe. Add back $2 in interest expenses, and we are at $3.50/boe NGL prices were down in Q3, but lets say they have now risen by 20%, to $34/bbl. Coupled with a 25% rise in nat gas prices to about $3.20, and that