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JJ Butler
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JJ Butler (pseudonym) spends his days doing research for investment and writing. As a teen he was inspired by two biographies on Warren Buffet and subscribed to the Wall Street Journal. Today Jeff reads 10-Q filings and takes notes while listening to company conference calls. Jeff resides near... More
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  • Canadian Income 0 comments
    Jun 28, 2012 1:47 PM | about stocks: PRQNF

    Simply said, $70 would cause a slew of problems for oil producers. Don't look now but unless it is being priced of against waterborne oil, we are there. Economics get very skinny and capital budgets outspend cashflow with low oil prices. Yes Virginia, the oil producers are very leveraged to commodity prices. Yet natural gas is showing signs of life and could be the turn-around story next winter, while NGL's may be the next in the tank.

    Today Canada's Progress Energy (OTC:PRQNF) is higher by 74% after agreeing to be bought by Malaysia's state oil company for $4.7 billion in cash. The plan is to send natural gas west in a few years. Those Asians, always thinking long term!

    With oil down $2ish, natty down a dime and the market down a full percent, many energy names are hanging in there. Canadians income plays BTE, PWE, PGH, ERF, and OTCPK:FRHLF are all higher as the income seeking money flows to them from Progress. Even if they might have to cut their dividends.

    Stocks: PRQNF
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