Ha Rookie, Better do more digging for your facts. You make it to simple. You think O'Bama is going to correct the market before it corrects itself? Not a chance!!!! Just more whinning. By the way, I hear Baby Gap has bibbs on sale today. ngp
Your assumption is that NG will be that price...XOM won't wait because storage is only 1% lower than last year, its freakin cold, Obama is going to propose good bank bad bank, there is a 30% depletion rate per year in exisitng wells, rig count is dropping 30-40% and oh year...your a squirrley monkey
I would say that CHK's finding cost is in line with most of the other companies that they compete with in all plays. However, the problem for them is the amount of debt, compared to someone like Devon in the Barnett, EnCana in LA, or SW in Ark. In times like we are seeing all debt is going to be a big problem. If N.G. prices tank as some fear, me included, and it stays in the tank (below finding cost) say of $5.00, for 12-18 months it will be hard for any company with high debt to asset ratio to with stand this down turn CHK included. I know what $2.50-$4.00 N.G. prices will do for these companies, and so does someone like BP and Exxon. They can and will wait on that price structure to make a bid for the company. Time is on their side, because it is a buyers market now days. ngp
FrankieRay, I don't have to lie. I simply state the facts as I see them. I get bored every now and then and come this message board to see what people like you think they know about the oil and gas business. Comments like yours show you know nothing, just B.S.. People at home use more N.G. than industries, get real man. Any person with an I.Q above the Temp. in NYC today would know better than that. I suggest to take off the "Rose Colored Glassess", it is bad in the patch,and some like to know how it really is out here. ngp
You might have all the data we need but if you are not a CHK investor, why are you here? Don't you have your own company to run. I am sure you are not just here to do us a favor by saving us from ourselves. Without more information as to your motives for posting here, it would look as if you had bad business dealings with CHK or other similar firm and are here to mess with us. Perhaps you have good motives but I can't think of what they are at this point.
Rusty, Sorry in the delay in a reply to your ?. You ask who is WE. That would be myself and my employees. I own an Oil and Gas Company. My company is not near as big as CHK, but we are big enough to have our own Research and Marketing Dept. In my post, I stated who we use for outside advise. Most of ours is done internally. Historial statements proves nothing if it is not made before the fact, and not made public, therefore I stated what I think is going to happen to N.G. prices. Mark it down, and we will see in a month or so if I am correct. The big difference between ME/WE, and CHK besides size, is ME/WE have no debt to deal with. Regarding stock ownership of CHK, I have "none". Know to much about them, and would not take that risk. Been in the oil and gas business for thirty years, hopefully I know a little as to what I speak. ngp
Alabama was colder than Alaska, water fountains froze into ice sculptures in South Carolina and Florida shivered through a brush of Arctic air blast that deadened car batteries in the Northeast and prompted scattered Midwest power outages.
We have 12 weeks left in the storage withdrawl season. To get to 5 year avg. we have to have -116 BCF avg. weekly draw. So far we have avg. -94 weekly. It still looks like a better than 50/50 chance we go to low $4.00 range on spot N.G.futures. If that does not hold then an outside chance the wash-out will take us to mid $2.00 range. That price will be bad news for all energy producers stock prices. How long will it last, and how long can energy companies keep the doors open at that price is the big question. Our concern is this can last much longer than anyone thinks. ngp