Rex you may think I am bearish person but doesn't one have to be realistic...
bearish attributes about that Canada lng terminal starting as more potential regress could get the western Canadian sereditary basin to overproduce more and cause even more wild bottoms in aeco prices.
The opening of lng has allowed companies to start drilling their drill gassy side locations...and some of these wells are very compable to best USA plays. Changed in Canada because of technology it isn't 2015 anymore.
you are not grasping how easy it is too get high producing ng rates in new drills.
And lots of wells are holding so high for more than one year of production.
likely need a 25 percent yearly drop in rig drilling to just maintain production otherwise annual production is growing to grow so so fast.
amd remember companies haven't experimented with foothills ng fields using horizontal wells very much as with h2s gas you need to see high ng prices to make economics work.
i think almost every ceo in patch knows ng prices can't get over 4 bucks on a sustained basis as the basin would overnproduce quickly. New greenfield midstream plants is easier to get capital as it is less risky than being the actual energy producer. Midstream company always get their profit cut.
I think this became obvious last summer and ceos started making adjustments to the long term reality ng prices in Canada are never going to be high and have to be low gas ng producer to be viable.
Look at moves ygr to Pne made in 2023...
Prairie provident looks next headed to a very bad place.
Pne should list their operating costs with liquids removed.
and yes that Pne well with 200 condy is material as it also is producing like 700 barrels of other NGl along with this.
Very possible Pne would have had a q2 with negative cf or break even if you minus out Certus assets.
if Pne thought ng would be 4 bucks going forward in future why would they spend so much in Certus.
At 55 cent aeco...lots of Pne wells have to be hurting, don't be if you say otherwise.
55 percent of Pne ng us not hedged so under 1 dollar aeco on a low producing well has to be negative cr.