BAS executives gave a press release this morning containing select operational data from November. Here’s the quick recap; drilling projects for natural gas are real weak and demand for their services was kicked in the teeth in November.
BAS is off more than 7% before the open.
They are now forecasting an even deeper slowdown in the first quarter of 2013.
Now let me tell you how December is going to go. Worse than November, leaving expectations for the first quarter of 2013 even lower than they are now.
But at these prices, BAS remains cheap. And as companies go, it’s flush with cash in a sea of dying competitors.
I expect drilling for natural gas to pick up in 2013, provided we continue to witness natural gas prices holding onto recent gains (no double dipping into the $2 spot prices again, if you please).
That will lead to a second half spaz run in BAS shares, assuming all goes roughly according to plan.
The North America energy revolution is underway. It has not stopped. It has merely been delayed in wait for better pricing.
If you enjoy the content at iBankCoin, please follow us on Twitter
