I have enjoyed your posts and those of oilexplore along with others I cannot recall over the years.
It's been a long ride since the days of the old weekly storage report contests. The creative
prizes that were bestowed upon the winners.
The old Range Riders have lived to see some great days.
Oilexplore, I like you dipped into some REXX a year ago.
Bit of a sell off yesterday with the commodity stocks, but RRC still on track and executing exceptionally well. Expected production growth of 20-25% for years to come should double production each three years and cash flow should exceed those rates. That equates to about 1.6B in production in three years. CEO says the company borders on being investment grade. RRC has the equilvalent of more than 2 million marcellus acres when you factor in the stacked pay areas-Upper Devonian, Marcellus and Utica. You have to think that some major player can do the math and see a company with 3B production in six years with about the lowest costs in the industry and realized prices approaching $8 per mcf when you include ethane extraction at current prices-but they would have to pay for it! WE've owned RRC for a long time, but it appears to me it now has the best growth prospects in their history with all their marcellus acreage prospective.
I guess there's something to say for buy and hold! We've done well with RRC. You mentioned Rexx-I don't think the stock price reflects the value of their Utica shale-it's a small company and maybe gets acquired at some point with alot of their acreage surrounded by others. Although off the RRC topic, maybe do some research on Cobalt (CIE)-some real potential there with their prospects in the GOM and off the coast of West Africa. They announced a very big Gulf exploratory well the other day and have several big projects coming to fruition this year in areas where they have already had success.
Just got a chance today to read conf. call transcript; life has been very busy with a few twists and turns. Impacted my field trips also. Anyway alot of interesting data and will review it again. I do hope the wet Utica works out. MWE Liberty has been moving a steady and smooth NGL takeaway operation IMO. As oilexplore noted about ethane takeaway, ATEX work is moving relatively fast. Mariner East and West projects are not well defined IMO, but Liberty work is well underway. Unfortunately, we still have a few stubborn Twps. holding up E&P and midstream progress. Shell, I would not be surprised if they cancel the Beaver County PA ethane cracker project. PADD-3 pretty much has a dominating takeaway option now, assuming ATEX, inaddition to the recent Williams/Boardwalks announced ethane take away project. SXL noted they may announce another PADD-3 take away project. Assuming the Norway Petroleum Fund behind the scene dealings, why should Shell bother with a multi-billion dollar project when you have already signed a deal with RRC to ship ethane to Norway.
Indeed it has. It's kept my mom out of a nursing home and helped me through an unwanted early retirement. There has been some Maalox and Gaviscon along the way, but it's been well worth the discomfort at times.
A big thanks to you, Oil, Skep, Yogue, Kollmn, and others I have forgotten along the way who have offered insight and encouragement to stay. Here's hoping the good fortune continues for all the Range Riders.
Agree-great ride for RRC. I think there is finally an unerstanding that the fracking argument was total nonsense, the only thing that has kept this economy alive is cheap energy and that nat gas will ultimately bring more manufacturing back to the US and continue to create real private sector jobs. I would think the real large players have to be looking at RRC with all its great asset plays and mgt, but happy to see it grow as a stand alone company as they really start to benefit from the ethane extraction and higher prices. Just a great company.