If you look on Southern Star's website, under the investor relations tab they have a powerpoint presentation. The breakevens for Cotton Valley wells and Haynesville Shale wells are $3.11 and $6/Mcf, respectively. So with NG at 6.8/Mcf right now, they do have a slim margin for error with NG prices here. However, I think we will have a cold winter so that should get NG prices back to $9-10/Mcf. I will do some math later on.
Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.