TWTC has been cash positive for years , LVLT should realize an extra 150 million in free cash flow plus 200 million in cost savings per year after they merge operations………..
I read an article a week or so back , refracked wells cost about a million, Encana and Exco are doing the same in the Haynesville. Encana is no longer drilling new wells in the Haynesville , they are only refracking existing wells.
I can see the trend continuing , it’s just another reason why the NG rig count is falling and NG production is on the rise………..
And a year or so later up $12.00 plus..........,It’s turned out to be quite profitable , new 52 week high today $95.28 , not sure I can hold when interest rates start rising though.
The oil export ban has been lifted on a non-crude ,cleaned natural gas condensate or NG liquid is what they are talking about , it should help the drillers by supporting liquids pricing going forward…..
Lawler’s hedges are starting to look brilliant about now , even with NG dropping down a bit CHK will realize a 25% premium for dry gas over last quarter.
Dish does not owe Terrestar shareholders swat for the spectrum, they were purchased out of bankruptcy……………….
I am an TWTC holder so I have several months to think about my options , I may just may let it roll with the $10.00 cash PS and .7 share exchange. Either way I go I will I have large realized gains . Going forward it’s looking like LVLT has turned the corner so parking some money here might be a profitable option……….
“ The current natural gas rig count of 320 represents a drop of 52, or 14%. Most of the decline in natural gas rigs came from the Cana Woodford (-14), the Eagle Ford (-16), and other areas outside of the major classified plays (-20). However, natural gas rigs have decreased throughout 2014. At the beginning of this year, natural gas rigs drilling totaled 372.
Regarding U.S. natural gas drilling activity, Baker Hughes commented on its 1Q14 earnings call, “Taking a look at natural gas, U.S. working gas in storage is currently 1 trillion cubic feet below the five-year average. Getting storage levels back to average before next winter’s drawdown, would require an addition of another 3 trillion cubic feet of gas. And that sort of addition would require injection levels to approach record levels every week between now and then. With gas storage at this level, prices are higher than many would have guessed only a few months ago. When coupled with favorable oil prices, this environment fares well for our customers’ cash flow and spending capacity.”
If you check the realized gains from page 4 of the last annual report CHK averaged $2.45 for gas in 2013 and about $3.25 last quarter. We are a full buck above last quarter and full year 2014 will be almost double 2013 for dry gas…………The next quarters should impress……………
Acording to Bentek Power burn will not off set production growth , I will guess 106
Production, power burn both higher week-over-week
Bentek's estimate of US dry gas production hit an average 68 Bcf/d this week, in line with the Market Call forecast for the month. Northeast output continues to drive production growth; grossed production there is 40% higher than year-ago levels. Power burn averaged 24 Bcf/d for the week, with a high of 28.2 Bcf on Tuesday before trending lower the past three days. Burn month-to-date trails the Market Call forecast for June by 0.7 Bcf/d as cooling demand has not yet materialized in many areas. Burn is forecast to move back above 25 Bcf/d across the next week and top 27 Bcf/d into early July.
Dish may not even need to partner with a telecom if the pCell technology they are testing pans out, A nationwide build out could cost as little as a billion , not to mention it’s 100 faster than 4G.Dish has the spectrum to pull it off too.
Why buy them when you can bring them to China in JV
LONDON, June 11 (Reuters) - State-of-the-art American fracking technology is coming to China's vast shale deposits as a result of a joint venture between FTS International and Sinopec announced on Tuesday.
SinoFTS, as the joint venture will be called, marks an important milestone on the road to exporting the North American shale revolution around the world.
FTSI, formerly known as Frac Tech, was one of the first providers more than a decade ago of hydraulic fracturing equipment and services in the Texas Barnett shale, the first shale basin to be developed in the United States.
Since then, the company has grown into the largest supplier of well completion services in U.S. shale formations, including pressure pumping, wireline logging and water management.
FTSI has started to export its expertise around the world through a series of strategic alliances. Since 2012, it has concluded joint ventures with local partners in Brazil as well as Saudi Arabia and Oman.
Other specialist shale drilling and fracking firms are also taking their first steps overseas.
In March, Helmerich & Payne, one of the largest drillers in North America, announced it will transfer 10 of its modern FlexRigs to exploit Argentina's Vaca Muerta shale under a five-year contract with state-owned YPF,
I think we are in a sweet spot for the time being , With the rig count down as others have noted production is up, but not enough to replace last winter’s epic draw . It looks to me like we have support in the $4.50 range that could last until the end of the year. The benefit to companies like CHK will be enormous.
“Utica Triggers Regional Role Reversal reports that over the next decade, the North American natural gas market will see a series of major pipeline reversals that will change gas flows and price relationships across the continent.
Abundant gas supply will be the norm going forward and global energy companies have gone far beyond just taking notice. There are two main causes behind the natural gas market changes: the growth of Northeast gas production from the Marcellus and Utica shale’s, and burgeoning Southeast gas demand from power, large new industrial facilities and proposed LNG export terminals.
Taken together, these changes will trigger an unprecedented continental domino effect.”
The new industries being planned will pop up in the southeast primarily and be feed from the Marcellus and Utica , the existing infrastructure will reverse and pump NG out of the northeast to the south , quite a dynamic change………
LVLT has certainly pumped the price up , I have never been impressed with their management through. If push comes to shove and a sale develops I would rather it be CenturyLink because they have a stronger balance sheet and they acutely make a profit in their enterprise……..
Level 3 to Acquire tw telecom
Highly Complementary Business and Assets with a Focus on a World Class Customer
Experience; Positions Level 3 as a Premier Global Communications Provider
Transaction Generates Significant Financial Benefits; Expected to Be Accretive on a
Free Cash Flow Per Share Basis after First Year Following Transaction Close
Combined Company Enterprise Value of $25 Billion Creates a Stronger Competitor to
Deliver Significant Customer Benefits
BROOMFIELD, Colo. and LITTLETON, Colo., June 16, 2014 – Level 3 Communications, Inc.
(NYSE: LVLT) and tw telecom (NASDAQ: TWTC) today announced that they have entered into
a definitive agreement, intended to qualify as a tax-free reorganization, whereby Level 3 will
acquire tw telecom in a stock-and-cash transaction valued at $40.86 per share based on market
close as of June 13, 2014.
Under the terms and subject to the conditions of the agreement, tw telecom stockholders will
receive $10 cash and 0.7 shares of Level 3 common stock for each share of tw telecom
common stock that is owned at closing.
The combination leverages the highly complementary strengths of the two companies to create
a stronger, more nimble, customer service-oriented competitor to meet customers’ increasingly
complex local, national and global communications needs.
“We believe this is a financially compelling and very strategic acquisition for Level 3 that will
enhance our ability to continue to gain market share,” said Jeff Storey, president and CEO of
Level 3. “The transaction further solidifies Level 3’s position as a premier global communications
provider to the enterprise, government and carrier market, combining tw telecom’s extensive
local operations and assets in North America with Level 3’s global assets and capabilities.
The rest is on their web page , the real question is to hold or sell......................
Drilling a new well is a 7 to 12 million proposition , refracting an old well is 1 million , It might be more bang for the buck going forward if it proves out……..
Refracking cost Encana about $1 million per well, compared with about $12 million for wells it drilled in 2012. Encana is no longer drilling new wells in the Haynesville formation, executives said.
Since it isn't clear how long the benefits of a refracking last, Encana plans to collect more data when it refracks five more Haynesville wells this quarter, Martinez said.
If those prove fruitful it may consider expanding the practice to its holdings in the Denver-Julesburg Basin of Colorado and the Eagle Ford formation in Texas.
Another Haynesville operator, Dallas-based Exco Resources Inc, said it boosted output from a 2010 refracked test well by 1.3 million cubic feet of gas per day. It didn't say how much gas it was producing before the refracking. Average initial production from new wells Exco drilled in the second quarter was 12.9 million cubic feet per day.
Some of Exco's Haynesville wells after four years were producing about a fifth of what they did in their first year, with output declining 69 percent that first year alone, according to the company.
Exco believes the technology can be applied to 400 of its so-called "vintage" wells that were drilled several years ago using what is now outdated technology.
The company is planning a refracking campaign for 2015, Hal Hickey, Exco's president, told investors on a July 30 conference call.
Report: Level 3 interested in buying TW Telecom • 6:57 PM
• Level 3 (LVLT) is "intensifying talks with TW Telecom (TWTC) about a possible acquisition," though no deal is imminent, sources tell BrightWire.
• TW (current market cap of $4.5B) has a large nationwide fiber network (connects 20K+ commercial buildings) that would bolster Level 3's own network, and bills itself of the top 3 U.S. business Ethernet providers. Both companies are based out of Colorado.
• BrightWire states Level 3 was also interested in TW back in 2012, when the company (per reports) hired Evercore to explore its options. But Level 3 is in much better shape today to make a bid.
• Speculation that Level 3 could bid for TW has been around for a while.
No doubt Dan , Aubrey beat the odds , went from land man to billionaire and built a powerhouse gas company. He has my admiration and respect for his accomplishments. I think he over played his hand in my view [ just a tad ] Corporate governance was on another planet , board members running a muck , CEO out of control . Uncle Carl has brought accountability back to CHK and it should bode well for its shareholders.