Pwe's now will contribute a 5% reduction in oil output for 2015; it's now up to the rest of the companies and countries to do the same to reduce the oil surplus.
Your $20 is a stretch....will only happen if they purchase 250 million shares on a buy back program, which I hope they do when oil recovers a little and they sell some non core assets.
I meant pipelines going east and west taking Canadian oil to world markets and not relying on the USA all the time. I can understand Canadians vacationing in the South, no other choice during the winter.
I agree and am extremely embarrassed that Canadians continually go south all the time when we should be going east and west.
Bought my last at 3.01.....valuation is based on a lower price than today lasting forever....perhaps, but I doubt it.
There is nothing wrong with their debt levels, as debt is good if used correctly as leverage for the benefit of shareholders. They have $250 million maturing each year over the next 3 years, and the recent sale of $350 million can be used for the 2015 maturity. They have debt spaced out comfortably and should not force a liquidity issue. They have $1.5 billion unused credit facility, down from $3 billion, and they are planning to sell some non core assets as well in the future.
PWE is the poster child for high debt for the media although other companies are higher. Their market cap is 30% of book value while other companies are at 60%. PWE does not seem to have any credibility. No one seems to believe them that they are becoming more efficient. They need to show that over the next few quarters. They need to meet their targets, even exceed them. Their plan calling for $85 in 2015 is not helping them. Anyway I am all in except for a little powder.
HOUSTON (Reuters) - Plunging oil prices sparked a drop of almost 40 percent in new well permits issued across the United States in November, in a sudden pause in the growth of the U.S. shale oil and gas boom that started around 2007.
Data provided exclusively to Reuters on Tuesday by industry data firm Drilling Info Inc showed 4,520 new well permits were approved last month, down from 7,227 in October.
The pullback was a "very quick response" to U.S. crude prices, which settled on Tuesday at $66.88 , said Allen Gilmer, chief executive officer of Drilling Info.
New permits, which indicate what drilling rigs will be doing 60-90 days in the future, showed steep declines for the first time this year across the top three U.S. onshore fields: the Permian Basin and Eagle Ford in Texas and North Dakota's Bakken shale.
The Permian Basin in West Texas and New Mexico showed a 38 percent decline in new oil and gas well permits last month, while the Eagle Ford and Bakken permit counts fell 28 percent and 29 percent, respectively, the data showed.
That slide came in the same month U.S. crude oil futures fell 17 percent to $66.17 on Nov. 28 from $80.54 on Oct. 31. Prices are down about 40 percent since June.
U.S. prices fell below $70 a barrel last week after the Organization of Petroleum Exporting Countries agreed to maintain output of 30 million barrels per day. Analysts said the cartel is trying to squeeze U.S. shale oil producers out of the market.
I think $250 million is spoken for retiring short term debt....the other $100 million is for liquidity I think.....would like to get a list of their properties and an estimate of each for valuation.....preferably at the long term price of oil..
I think that a 3% surplus would not have such a dramatic price decline of over 35%. It won't take much to reduce the daily surplus through less drilling and capital reductions. Another aspect that demand will increase as oil is cheaper, the opposite of demand destruction.
How many corners does pwe have to turn? Oil price is limited for a considerable time. Anything over80 would bring back shale and the glut.