Well as with mine developers you can't value them on historical cashflow or profit. You either do projections and an NPV fraught with assumptions, or you use $/GJ in which case you can benchmark value across the sector.
The US uses something like 20 tcf of gas a year which is a huge market, and I guess if they wanted to replace all the coal with gas, then they could probably double that. I really doubt any significant gas exports from North America. Even if they did, they would only do that if the global gas price was very high, which in itself would be great for companies like AOE.
I however would not touch a conventional US gas producer such as PSA atm, they simply are not competitive against shale atm - I got out of PSA in 2006.
EL
AOE Price at posting:
$4.44 Sentiment: LT Buy Disclosure: Held
