/biz/ - Business & Finance

>>54966083
thanks for the info frac chad. Always interesting to hear your take as well. I'm not well read on the subject at all but yeah no doubt refracking failed frac wells with proper material should be a very profitable business -- but I would perhaps avoid investing in fracking sand, equipment or services right now when rig counts are falling, though that might just be my bias speaking. After all I'm buying gas producers while the price is in the dumps lol

My point here was more about the raw unprofitability drilling new of low liquids wells at these natgas prices. So if you drill a new well now and the prices don't improve significantly in the next six months, that capital expenditure would quite possibly end up as a net loss; cash flow negative. Only the best producers can remain above the water in an environment like this. If they get a premium for their sales, or if they have lower costs, or strong hedges, or a flexible balance sheet, or lots of tier one drilling locations they will get through this price slump. There are lots of bad companies with bad balance sheets, or low netbacks/margins, or they may be badly managed some other way and those companies will suffer in this current price environment.