Post by
MyHoneyPot on Sep 29, 2021 12:22pm
6 dollar gas - 25 New Wells - 21 dollar stock
In Q4 of 2021 the ceiling price for ERF gas will be 6 dollars for roughly 1/6 of their gas production and all the rest will sell for spot gas prices.
Countries like Japan are paying 27 dollars a MMcf, or 4 times that price and countries like China want more LNG.
ERF has essentially 40,000 boe of unhedged gas and this winter looks fantastic, at 6 dollars a boe, that will mean 6*6*40,000 *91day = 131 million dollars.
That is the bonus of what gas could look like Q4 going forward.
Still Q3 looks pretty good and i am excited about Q3 number with gas and all the flush production from rough 25 new wells.
Nine Points energy partners, Eric Nuttal say this is a 21 dollars stock.
Do you guys believe it?
IMHO
Comment by
smocher on Sep 29, 2021 7:05pm
With greater than 20% Fcf, a divy increase is likely. $13 by year end. WTI $75+ will allow buyback and debt reduction thro 2022.