Bingo, you got it! Hit the nail on the head! 7X bagger. Those are hard facts!
You shorts a got very few days left.... this is one stock if I were short where I would like to be first in line to close out my position.... watch the action and pps the last 7 minutes today!
NG = $4.07 this morning. Todays powerburn inventory is and will fall all day and through next week to almost record draws in the mid-east USA.
Based on todays release, with underlying demand higher, the -200B projection is moving higher as the artic blast falls southward out of canada.
And there you have it.... DRAW was -162Bcft and stocks are 104B below the 5 yr avg. And, underlying demand is much much larger than the market is prepared for. NG supercycle has just turned favorable and hold your shares very tightly....no sale. $5 NG changes the landscape for the JV deal and its future value as well as it brings new Investors into KWK that are of a different breed. If NG goes to $6 KWK goes north of $20 .....be patient.
The draw for Dec 7th - 13th is currently projected at -200 Billion cft. The suprise that only a few savy NG investors have realized is the base draw of NG is much higher than previous years and inventories are depleting faster than forcasted. While on the drilling front we are at an 18 year low in rig counts and fracked wells are dropping off on volume output. The NG companies are not investing again until NG sustains a rally above $4.50-$5.00. A super cycle similar to coal in the past is occurring.
It will be very close to that number with the way they have the model set up by region and supply. +/- 5 pts. It will be a huge draw and heavy draws forcasted later this week and all next week.
Draw on NG inventory -141 Biilion, that is 101 Billion cft greater than the 5 yr avg and we are officially below the 5 yr storage level with very very cold December weather dropping down now. High in Chicagp F, S, S, M highs in the 20's, lows in the teens.
You never know....they might even sell it outright in the next 1-2 years. A clean energy fuel source will be more valuable than ever in the near future.
I think $4.25 in Jan, $4.50 by Feb, and $5-$6 after LNG exporting begins in 2014 forever. Then, and only then will the NG Riggs re-enter the fields in a sustained manner. WE ARE AND HAVE BEEN AT 18 year lows on rig counts for quite some time.....long the stock, and its still disconnected with its peers - before the HRB news.
And, then the convertible at a decent price to remove the 2016's and take proceeds and invest in niobrara or west Texas to ramp up cash flow. Also, build out of the HRB over the next 3 years.
I agree captain. I like the prospect of the HRB deal where KWK partners not only with a Tokyo gas type for 20-25% but also an LNG company that allows us to sell our HRB gas to Asian countries for $6-$7 pre conversion. Then your talking Twice the Barnet value and the stock could go well into double digits over 6-9 months.
Confidence in the HRB resource and catalyst JV KWK has already announced an equity offerring to take out the 2016's. I believe glen and john already know what the price is and what it means. Convertible or outright takeout will occur significantly higher than $5.