This comment is VERY important to us Tandem holders because we have in-house drilling capability and energy prices will remain strong (and Tandem gets their chit together!):
A Rigged Market
For those wondering about the challenges facing North American natural gas production, consider this:
In the past year, the number of rigs drilling for natural gas has nearly doubled.
In that same time period, year-over-year production has remained almost flat.
Some might argue that seems nearly impossible, but it seems more realistic when you note the nearly 30% decline rate from existing wells. In addition, many of those rigs have been added over the course of a year, and there is little doubt that over the course of the coming year more production will be added. However, with the decline rate continuing to accelerate, it isn't likely that a large step-up in natural gas production will materialize.
Cash is King until further notice!!!
My comments on companies are usually my opinion of long term success (years). The PPS may go up or down greatly in the meantime depending on the number of greedy suckers with money.
