I've asked a couple times but will ask again. Is Miller Fabrication structured in a manner that it is an asset of HPGS or is it a separate entity?
The oil industry in particular is looking very good for 2012. Was down in Vernal UT with a Patterson guy. They had dug out a rig that had been "mothballed" for 2 years. Drilling in WY, UT, CO, ND and MT is looking very good. It's primarily for oil with gas as a byproduct.
When making natural gas plays keep in mind the increased tariff on the pipeline transportation. RICE NESHAP and RICE MAC requirements start kicking in 2013. That combined with "spot" emission checks on compressor engines is going to add significant cost to the transportation costs.
Working on getting a 3400 series rich burn Cat generator to hit 1/2 gram per brake hp levels of CO and 1/2 gram NOx. It costs $ to do that. *the generator is used in a gas field and is part of the production costs.
When gas comes out of the ground, drilling, pumps, gathering pipeline and gathering compressor packages cost $. Take treaters, compressor engines, generators etc. and the gas they burn combined with mainline transmission costs and it adds up in a hurry. Factor in various qualities of product and the price received by a company like HPGS can be far less than the Henry Hub reporting price.
