Pine Cliff Energy Ltd T.PNE

Firming gas price & low P/cf ratio

[snowshoedb]

The natural gas price in the US continues to firm up above $3.00. The market has long anticipated that it would be a little bit more expensive to fill storage this year. But there was no acknowledgement that it would likely be above $3.00. 

Now the summer heat is expected to come hotter than expected so early in June… And no reduction of LNG exports and Mexican exports. Maintenance season is already over for the pipe line business. The last time this happened in 2012… Our gas price Rose to between $4.00-$5.00. Each $.10 rise in May gas AECO is worth $3.6 million to PNE. This equates to one cents a share.

As the heat increases in the east and Midwest. And California that has no water rights because Lake Shasta is empty. You will see a larger gas burn in California for air conditioning as well as in the east and Midwest. Texas will not be able to refill storage because of the high volumes of air conditioning required and Export of LNG and Mexico pipeline gas

I figure PNE will do some drilling for oil and will pay down some debt With the $20 million they are accumulating. That will give them some financial flexibility.

The stock cannot continue trading at two times cash flow. I'm expecting a bump to $.45 before fall

[Skylar1]

Yea good to see all this happening , i still think they will buy out some small maybe private company , don't know what's in their area . Would love to see production go up even with oil wells.

[Skylar1]

Hey everyone if snowshoedb is right about $.45 before fall , i say we all chip in on a new top of the line set of snowshoes for him LOL . sorry for the the bad jokes i never made it as a stand up comedian as you can see.