Kelt Exploration Ltd T.KEL

Ethane is soaring (doubled).

[Cheadle12]

Kelt produces about 1000 boe/pd of ethane.

Same story with Propane.. about 26% of Kelt's NGL mix.

[Beakr123]

Thats peanuts cheadle. Does that ethane even get sold to a sales point that'll recognize the increased price enough that it makes a meaningful impact to the company finances? 

[PabloLafortune]

When NGL prices were low, it didn't matter much if a producer's NGL mix was 5% or 20%. But as NGL prices increase (been increasing for quite a while, faster than both NG and oil), the difference between 20% NGL and 5% becomes more material.  If a producer has 5% NGL and another has 20%, and NGLs are at $45, the difference in overall realization is $6 and change after royalties, which

[PabloLafortune]

Mea culpa, the advantage Kelt had over AAV in realization due to NGL mix was I'm guessing around $3 (seems like AAV leaves butane in the gas stream?). Guesstimated by backing out butane from Kelt's NGL #s.

[WCWiteration3]

correct beakr, that is meaningless to post about a price moive up on less than 1000 bopd. and no KEL will not be getting that posted price until the price sticks as the commpodity works iot way thru the system. Kel is a buy bcuz they have zero debt and will only need to add debt for next year, unless they are prepared to sit on their arses and only spend cf.. ummm.. not this team, they are balls

[PabloLafortune]

The one risk on the horizon to borrowing is inflation induced higher interest rates (Korea already raised...) which could wreak havoc on many fronts..... As an investor, my strong preference would be that any loan be repaid within a year based on hedged production which im guessing means a maximum of $250M loan if fully hedged for the remainder of 2021 and 2022.

[WCWiteration3]

wow pablo, debt is nothing at all to worry about here.. my goodnes they are just now putting debt on their balance sheet and it is small amount, probably just working cap deficit so.. for the next two years, this one is destined to head higher, realize winter ain't so far away and with gas prices over $4 and heading for $5.. own this, and aav too