AZZ can make money out of 1.5 mmcsf/day - as long as the Eagleford shale has paid off the well! Once the Eagleford is abandoned, the well will just sit there chugging away at 1 mmscf/day for a long time. At current H-Hub prices of $3.35/mscf/day, that makes $3,350 USD/day (or $1M per annum). So at the end of the Eagleford life you might have say 50 wells making revenue of as much as $25 - $50m pa. Not a bad sting in the tail!
AZZ Price at posting:
29.0¢ Sentiment: Buy Disclosure: Held