RE: Gas up 5% YESTERDAY13 Dec 2019 20:41
So, didn't take long to show your face again NI,( I have been waiting all evening ) so a cumulative of -4% over two days, that's OK with me.
SQZ as per BKR PSA have production hedged at 35p/therm. Also SQZ have stated "SQZ will also seek cost effective opportunities to add to its existing 35 pence per therm gas price puts", which they no doubt have done plus don't forget that BP et al , will pay SQZ if our costs exceed the income for the balance of the production. So no worries here about gas prices afaic. Profit and revenue will be substantially higher this year that ever before in the history of the company.
It is no coincidence, imo, that on many occasions a steep intra-day fall in gas prices happens when the US markets come online. Appears to me as if the US are attempting to manipulate the wholesale markets, but that discussion is for anther day.
That said, SQZ shrugged off today's gas fall by our SP CLIMBING +5% ..... don't forget our 20% increase in revenue from our BKR PSA which starts in less than 18 days..... Oh, and that mega deal in now closer than ever before, could even be Monday !
PS Low gas prices puts SQZ, as a cash rich producer in prime position to acquire bargain basement NS assets. So, as you see NI, whilst our BKR PSA provides a safety net, it also allows SQZ to expand at optimum time in the market.
Also, note to all, that NI FAILS to point out the gas price on any other BB, though has a fixation with SQZ .... wonder why. Ans: His boss wants to close their shorts and as the mega deal is so close, want to open longs too. PERIOD !!!
atb
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