RE: So3 Apr 2019 13:46
Contrary to what our 'friend' is saying, atm the price of gas has not detrimental effect on SQZ revenues imo.
Last year was a freak year for prices of wholesale gas, todays price action is the market returning to its norm, nothing more.
2018 had an exceptional high average of c55p/therm.
SQZ quite rightly have hedge in place at 35p/therm.
Given we now have 25% more production from BKR and Erskine back online, which was out of production for virtually all of 2018, revenue for 2019 will not be much different from 2018 imo atm.
So +25% from BKR and +30% from Erskine at todays 35p/therm bring us back to 53p/therm. On top of this we have seen a 40% lift in oil prices since start of the year which accounts for 20% of our production.
So, as I mentioned, SQZ are still making loadsamoney, even without R3 coming online this year.