Suppose that the US natural gas price converges to those of Asia JKM or European TTF (after taking into account of LNG processing and shipping cost) because of the increase of LNG export and somewhat under production in the US. How much impact do you believe that the converge will have on AECO price? I understand LNG Canada, which presumably will initially have export capacity of 2 bcf/day, will not be in operation until 2025. I am interested in your view of the differential between AECO and Henry Hub before 2025.
It is not among the names I follow in detail. The company continues to squander opportunity with hedges on about 50% of its output and those hedges are well out of the money. See page 19 of their Q1 2022 report for details. https://crewenergy.com/wp-content/uploads/2022/05/Q1-2022-Full-Report.pdf Otherwise it has good land holdings and decent operating costs in the Montney and would be a winner but for hedging finger trouble
It looks like their 2023 hedges are much less, however it does look like they have the hedging disease. And even worse the "costless collar" disease, which some companies seem to think is a very clever idea. So there's a risk they will keep adding.
abt 45% hedged at $3.36 rolls off 2023. Good part of the bc land outside FN claim, and near big boys. despite hedge, FFO yield currently mid/high 20s. Good bet on 2023 and beyond. hedges no surprise due to leverage, which is looking better and hope that alleviates their hedging tendency. Are you able get their thoughts on that Mr. Blair?
Hi Michael,
Suppose that the US natural gas price converges to those of Asia JKM or European TTF (after taking into account of LNG processing and shipping cost) because of the increase of LNG export and somewhat under production in the US. How much impact do you believe that the converge will have on AECO price? I understand LNG Canada, which presumably will initially have export capacity of 2 bcf/day, will not be in operation until 2025. I am interested in your view of the differential between AECO and Henry Hub before 2025.
have you evaluated crew energy?
It is not among the names I follow in detail. The company continues to squander opportunity with hedges on about 50% of its output and those hedges are well out of the money. See page 19 of their Q1 2022 report for details. https://crewenergy.com/wp-content/uploads/2022/05/Q1-2022-Full-Report.pdf Otherwise it has good land holdings and decent operating costs in the Montney and would be a winner but for hedging finger trouble
It looks like their 2023 hedges are much less, however it does look like they have the hedging disease. And even worse the "costless collar" disease, which some companies seem to think is a very clever idea. So there's a risk they will keep adding.
abt 45% hedged at $3.36 rolls off 2023. Good part of the bc land outside FN claim, and near big boys. despite hedge, FFO yield currently mid/high 20s. Good bet on 2023 and beyond. hedges no surprise due to leverage, which is looking better and hope that alleviates their hedging tendency. Are you able get their thoughts on that Mr. Blair?