SEVEN GENERATIONS ENERGY
While you don’t see it said all that often, there is a very real possibility that natural gas prices may never recover to a price that many companies have long been waiting for. Sure, as a commodity you know that natural gas prices are going to always bounce around somewhat. The reality is that there is a huge amount of natural gas that has been unlocked in North America. More importantly, companies are getting better and better at getting that gas out of the ground each and every month.
Seven Generations is a rare natural gas producer that has not lost momentum despite the brutally low gas prices in recent years. The company’s liquids-rich Montney gas play has allowed it to double production in 2016 from 2015 levels, and nearly triple what the company produced on average in 2014.
Despite this success, Seven Generations CEO Pat Carlson is not willing to sit on his hands and hope that higher prices will come. Instead, he is looking to push forward with new initiatives that could include producing plastics or electricity. There is certainly significant risk involved in heading down this road, but the risk-taking gene is what has driven many independent producers to the successes they have achieved.
Besides, it might be about time that this industry became less a passive price-taker for its production and instead took the bull by the horns and gained more control of its destiny. Using low cost natural gas production as a competitive advantage in a vertically integrated business would be a tremendous opportunity.
As another company operating from a position of strength, Seven Generations just paid $1.9 billion for 155 net sections of very complementary Kakwa-Montney land from Paramount Resources.
SEVEN GENERATIONS CEO PAT CARLSON