It's been dark day at Chesapeake people are dropping like flies. DL has been leading us through capital discipline, pointing at an ever distant light saying "free cash flow in just two more years". But then in the earnings call you hear the rest of the story, in 2yrs we could be out of rock to drill in the PRB and the EF.
We will be cash flow positive because our capital expenditures will be next to nothing, because there is nothing left to spend on. About the time our production depletes our debts mature. We will owe $11-12B, and have 2 little rocks to stand on, Brazos and Marcellus, which will be mostly used up. There will be no assets left to sell.
Its time (or maybe it's too late) we learn what AMC always new, the money is made in geology and land. Take your real best assets (you're people) and empower them to find value. If there are no major oil discoveries left in North America then let's go where we can still find oil and gas. If World market condition are unfavorable let look for micro economics. Surely someone wants to build a gas power plant where there is no pipeline. If there is anybody in the world that can find and produce gas in sh–ty rock its us! It's kind of our speciality.
The concept is simple find somebody that needs what we have and sell it to them. We sure as hell aren't going to make it by borrowing and drilling.