The idea that this company is worth $1 billion is pretty funny.
Who is Avondale? See an AvondalePartners, which is the official trademarked name and thus not the same as "Avondale."
If your belief about a company's potential is based entirely on opinions from company press releases, you will eventually lose your shirt.
Here's my reasoning. Many of the shale oil producers produce some natgas as a byproduct. If they shut down those wells, because cheap oil makes them unprofitable, that means a reduction in US natgas production. That pushes up the natgas price, which is good for producers that are mainly in natgas, like XCO (also SWN and COG).
Open-minded discussion, please....
The cost of keeping the lights on is an operating expense.
I'm mainly looking at who will be driven out of the game at around $65 oil. It looks like PWE will survive and then benefit once the high-cost producers close shop and the glut is reduced.
Am I reading this financial statement correctly, when I conclude that PWE's cost of production is around $22 per BOE?
$21 operating expenses