Dan
Is there a way to know how much of Comstock's gas is sold as LNG overseas and if so, then at what price do they sell it at? Henry Hub?
Thanks
Comstock gas
Re: Comstock gas
They sell at HH less a basis adjustment 20 to 40 cents
The export facility chills it and sells it to a middle man at cost plus fixed fee
The middle man hires the ship and take the 1 month price risk from USA to wherever it is delivered
FLEX NG is a shipper FLNG. You can see their briefing here
https://static.seekingalpha.com/uploads ... iginal.pdf
The export facility chills it and sells it to a middle man at cost plus fixed fee
The middle man hires the ship and take the 1 month price risk from USA to wherever it is delivered
FLEX NG is a shipper FLNG. You can see their briefing here
https://static.seekingalpha.com/uploads ... iginal.pdf
Re: Comstock gas- from the call dropping rigs
On dropping rigs
Well, they are definitely dropping rigs. We have talked to a few of them, not all of them, but everybody we have talked to is basically planning to drop rigs. We've already seen a few rigs dropped here just in the last two to three weeks. So I think that's how many ultimately they drop remains to be seen. But definitely, everybody that we have talked to is dropping rigs, has dropped rigs.
Well, they are definitely dropping rigs. We have talked to a few of them, not all of them, but everybody we have talked to is basically planning to drop rigs. We've already seen a few rigs dropped here just in the last two to three weeks. So I think that's how many ultimately they drop remains to be seen. But definitely, everybody that we have talked to is dropping rigs, has dropped rigs.
Re: Comstock gas- from the call FCF goals
Comstock gas- from the call cash flow goals for the year
The Ceo said>
We're going to manage it, be that responsible in the future. So our goal is net net-net, to get quarter-by-quarter-by-quarter, if you get through 2023, and it's a soft year, our goal is to not have borrowed net at the end of next year, $0.01 from our credit facility. So you can't look at it on a 90-day basis it drives you crazy. But that's our goal.
So the goal is to have 0 FCF for the year... YUCK
The CFO added
we kind of set a goal of creating at least $0.5 billion of a cash kind of reserve that could fund acquisitions, et cetera. So I think that's kind of where we would - once we kind of have that established, then we kind of will look at other return of capital.
So translation , keep the 12.5 cent dividend and try to build cash 500 m then decide what to do with it
The Ceo said>
We're going to manage it, be that responsible in the future. So our goal is net net-net, to get quarter-by-quarter-by-quarter, if you get through 2023, and it's a soft year, our goal is to not have borrowed net at the end of next year, $0.01 from our credit facility. So you can't look at it on a 90-day basis it drives you crazy. But that's our goal.
So the goal is to have 0 FCF for the year... YUCK
The CFO added
we kind of set a goal of creating at least $0.5 billion of a cash kind of reserve that could fund acquisitions, et cetera. So I think that's kind of where we would - once we kind of have that established, then we kind of will look at other return of capital.
So translation , keep the 12.5 cent dividend and try to build cash 500 m then decide what to do with it
Re: Comstock gas
I am already loaded up on CRK and after the last conference call, I will load up even more. It appears no one understands their strategy and mid to long term upside.
Re: Comstock gas
I plan to go over Comstock's forecast/valuation model on today's podcast.
Dan Steffens
Energy Prospectus Group
Energy Prospectus Group