Capstone Green Energy Corp (fka CGRNQ)

[Seasound]

Double edged sword with NatGas heading towards 2 bucks. Exporting Natural Gas Would Be Very Profitable For North American E&P Companies. As the price declines less wells are drilled and more existing wells are capped. What does this mean for Capstone? I would suggest that the slowdown in drilling may impact their recent order rate for C65s although many drillers are shifting their focus to oil plays. A pretty good view of the current trend can be seen at The Haynesville Play and other rig utilization sites.

Because of a supply/utilization imbalance in the US the Henry Hub front end contract for natural gas is around $2.25 per mmBtu and is expected to continue downward. This supply overhang is expected to continue for years to come--Cheniere Energy CEO: Shale Gas Industry 'Very Early in the Learning Curve'

Japan has shifted a large portion of their energy production from Nuclear to natural gas. The current rates for delivery of LNG FOB (Freight on board or Free on board) to Asia has just exceeded $16.00 per mmBtu

Jamison said in a CC last year that due prior missteps in the Japanese market that they, Capstone, are having to rebuild that market. I suggest that there will never be a better time to start pounding nails than right now--start aggressively selling the C100's to Japan to meet their urgent needs for distributed power sources. Capstone is a natural play for a country which is undergoing a cultural shift in the way it produces and distributes power.

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