Artist--Your thoughts on this steady move higher recently?
Started to add at $34 and today kicking myself for not doing so. Most of my oil/gas stocks are performing well, so we may be just hanging onto the coattails of that rally. Still have not seen any big volume that would signal big players coming back, but this rally is looking good at the moment. Hopeful we can clear $37 soon.
I think it's money moving into E&P's in general. Nothing positive. Nothing negative. Just a rising tide lifting all boats here. I haven't had a chance to evaluate the rearranging of the deck chairs here at EVEP but at lest it is not seen as a negative. I've not re bought what here what I lightened up on earlier. Made decent money on GPOR finally. Got hurt on COG. Comfortable holding all of these. Cautious on adding to any of these positions. I DON't see any big EVEP deal this year. No one is buying land, especially in Utica. If the Utica pans out, it will be Enervest/ChK drilling it or a land sale 2 years down the road when drilling resumes in the US.
Takeaway is going to be a continuing issue. It's why I got hurt on COG. COG is profitable, but can't get it's Marcellus gas to market at market prices. Utica Wet gas window is a weak spot right now. Ethane is the largest component of ngl. But there is nowhere near enough ethane takeaway. That ethane is getting drygas prices. 3 years ago ethane was gold. Now it's a problem. EVEP can get it away from the well , but there aren't many end users paying up for it.
So while I'm pleased at this week's price action, I don't see it continuing too far for too long until some of these problems get solved. Oil window can work. But it's not going to do much for EVEP this year or next