Ok Wall, I'm with you, but oil rallied by 5% earlier in the week, and not 6% today. CHK is negative for the week by a lot. What gives? I would think CHK would be rallying the hardest based on their short percentage. I'm still long but not encouraged by the activity or lack of movement this week. Help me come to my senses.
As of last week, we should be in the injection season. I'm betting this report and possibly the next two reports we will see a significant draw rather than injections. This may begin the abnormal draws, or lower injections now and through the summer as gas production continues to decrease and demand especially from power plants and exports increases. This summer could be the turning point for natural gas, and a very abnormal injection season with less being produced and more being consumed. The EIA might get a surprise.
yeah, and if you look back into 2008, it only took 7 months for CHK to go from 64 to 14. It could be 50 by yearend when they realize all the shut ins and lack of new investment is creating a shortage of oil AND gas.
It looks like it equates to $803/acre, is that a good deal or a fire sale? If they don't see this in their wheel house, that's fine, but it seems like a pretty low price for assets that were selling for $6- $8k/acre. Welcome any comments.